![]() ![]() Rocket posted increases in closed loan volume (up 143% Y/Y) and Partner Network growth (up 76%). The sharp selling that followed, with RKT stock fell 13.55% last week, is puzzling. ![]() Investors should take notice of the 437% year-on-year revenue growth to $5.04 billion. Increasing margins, at 5.19% and up from 3.25% in Q1, suggests improving sales margins ahead. Wells Fargo ( WFC) trades at a ~12x forward P/E, while Citi ( C) has a forward P/E of 8.7 times. At 10 times earnings and a forward price-to-earnings ratio of 16.6 times, investors are paying slightly more for this growth play. Rocket points to its platform as a differentiator over the competition. The firm benefited from low interest rates, which in turn drove home loans. Rocket Mortgage closed $72.3 billion in loan volume, a record in its 35-year history. As interest rates fell to never seen before levels, Rocket offered its clients mortgages that took advantage of the favorable environment. Rocket has the tools and technology to stay ahead of the traditional banks. Yet after posting strong second-quarter results, markets sold on the news.Īfter Rocket stock peaked at $34.42 and closed recently at $24.57, should investors buy this mortgage-financing provider? Strong Second Quarter ![]() Fortunately for shareholders, the Zoom Communications ( ZM) post-rally lifted Rocket shares, too. RKT stock fell from around $24.50 to a $17.50 low. After its initial public offering, avoiding Rocket Companies ( NYSE: RKT) also averted losses that followed shortly afterward. ![]()
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