Rocket Cos. Stock Falls Short on Thursday Compared to Rivals
December 30, 2023
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On Thursday, Rocket Cos. The real estate and mortgage finance company is the parent company of Rocket Mortgage, the nation’s leading online mortgage lender. While the stock market overall enjoyed a good day, Rocket Cos. This disappointing performance followed what had been a strong start to the year for Rocket Companies ($NYSE:RKT). The stock had surged following its initial public offering (IPO) late last year, reaching an all-time high in February. While the stock has since declined, it has still achieved a remarkable return since its IPO.
Analysts suggest that Thursday’s lagging performance was a result of investors’ growing concern about rising interest rates and their potential impact on the mortgage business. With the Federal Reserve pledging to keep rates at historic lows, some worry that the housing market could be in for a downturn, which would negatively affect Rocket Companies’ profits and stock prices. Investors will be keeping a close eye on Rocket Companies in the days and weeks ahead to see if it can regain its footing and return to its previous high levels. Until then, the stock may remain volatile as the market reacts to changes in interest rates and other factors.
Share Price
On Thursday, ROCKET COMPANIES stock experienced a disappointing day on the market, opening at $15.0 and closing at $14.5, down 3.5% from prior closing price of $15.0. This drop put it behind its rivals in the market, which closed the day with gains in their stock prices. Analysts attribute the decline in ROCKET COMPANIES stock to an overall market selloff, sparked by concerns over rising inflation and its potential effects on the economy. The company had recently reported strong earnings results and analysts remained bullish on its prospects ahead of Thursday’s trading session.
However, investors were not convinced that ROCKET COMPANIES’ stock was worth holding onto, leading to Thursday’s drop and its underperformance compared to rival companies in the sector. Moving forward, investors are closely watching to see if the company can turn things around and get back on track for growth. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rocket Companies. More…
| Total Revenues | Net Income | Net Margin |
| – | -22.51 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rocket Companies. More…
| Operations | Investing | Financing |
| 10.82k | 578.74 | -12.82k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rocket Companies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 20.65k | 12.14k | – |
Key Ratios Snapshot
Some of the financial key ratios for Rocket Companies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.5% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
At GoodWhale, we have conducted an analysis of ROCKET COMPANIES‘ fundamentals. Our Star Chart reveals that ROCKET COMPANIES has a low health score of 0/10 with regard to its cashflows and debt, making it less likely to safely ride out any crisis without the risk of bankruptcy. Furthermore, our analysis indicates that ROCKET COMPANIES is strong in profitability and weak in growth, asset, dividend. As such, we classify ROCKET COMPANIES as a ‘ufo’, a type of company with potential for turnaround. Given this assessment, we believe that investors looking for companies with turnaround potential may be interested in investing in ROCKET COMPANIES. Such investors should be aware of the risks associated with investing in such a company and should conduct their own due diligence before investing. More…
Peers
Its competitors include Ocwen Financial Corp, Federal National Mortgage Association Fannie Mae, Home Capital Group Inc.
– Ocwen Financial Corp ($NYSE:OCN)
Ocwen Financial Corporation is a financial services holding company that, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, Real Estate Owned (REO), Investment Management and Corporate.
– Federal National Mortgage Association Fannie Mae ($OTCPK:FNMA)
As of 2022, Fannie Mae has a market cap of 584.66M. The company is a government-sponsored enterprise that provides financial products and services to homeowners and renters. Its products include single-family and multifamily mortgages, home equity loans, and lines of credit. Fannie Mae was founded in 1938 and is headquartered in Washington, D.C.
– Home Capital Group Inc ($TSX:HCG)
As of 2022, Home Capital Group Inc has a market cap of 982.97M. The company is a provider of alternative residential mortgage solutions in Canada. Home Capital offers residential mortgage products, including first and second mortgages, home equity lines of credit, and lines of credit. The company was founded in 1954 and is headquartered in Toronto, Canada.
Summary
Rocket Companies, Inc. has seen a significant downturn in stock performance on Thursday compared to its competitors. Its stock price dropped significantly that day, indicating to investors that the company is not performing as well as its peers. Analysts recommend taking a closer look at the company’s fundamentals and financials to gain a better understanding of the current state of the company and potential investment opportunities. Investors should be aware of any news or developments that might affect the performance of the company, as well as assess the risk associated with investing in Rocket Companies, Inc. and make sure it is suitable for their portfolio.
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