Rocket Companies (RKT): Revisiting Valuation After a 75% Year-to-Date Share Price Surge
Rocket Companies (RKT) has quietly outpaced the broader market this year, with shares up roughly 75% year to date. This performance is prompting investors to revisit how its mortgage and fintech mix might be repriced.
See our latest analysis for Rocket Companies.
At around $18.99, that strong year to date share price return of about 75% sits alongside a 59.5% one year total shareholder return, which hints that investors are warming to Rocket’s growth story again after a choppy few months.
If you are looking for other financial names showing renewed momentum, it could be a good moment to scan fast growing stocks with high insider ownership for fresh ideas beyond the mortgage space.
With shares now brushing up against analyst price targets after a sharp rebound, the key question is whether Rocket still trades below its true potential or if the market is already pricing in its next leg of growth.
Most Popular Narrative: 4.7% Undervalued
With Rocket trading at $18.99 versus a narrative fair value near $19.92, the current premium growth story still assumes more upside ahead.
The analysts have a consensus price target of $17.167 for Rocket Companies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $25.0, and the most bearish reporting a price target of just $12.0.
Want to see what kind of revenue surge, margin transformation, and future earnings multiple are baked into this outlook? The full narrative lays out the bold roadmap.
Result: Fair Value of $19.92 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this optimistic path could be knocked off course if housing affordability worsens or fintech rivals force heavier spending to defend Rocket’s margins.
Find out about the key risks to this Rocket Companies narrative.
Build Your Own Rocket Companies Narrative
If this outlook does not fully align with your own view, dive into the numbers yourself and build a custom narrative in minutes: Do it your way.
A great starting point for your Rocket Companies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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