#1 - Rocket Companies (NYSE:RKT)
If the housing market is about to get flooded with prospective buyers, now is the time to buy shares of Rocket Companies (NYSE:RKT). Rocket, which is the parent company of Quicken Loans, is the largest pure-play mortgage lender. And the company has many features that appeal to tech-savvy borrowers. It’s contactless and simple and can be done via mobile phone which is very appealing to these would-be buyers.
There is some evidence that the novel coronavirus created an inflection point in which the desire for more living space and the enticement of lower interest rates moved many millennials into the housing market. The absence of student loans could provide further impetus to this movement.
In 2019, Rocket closed $145 billion of mortgages, and they exceeded that number in the first three quarters of 2020. However, that performance is not reflected in the RKT stock price. After leaping up to over $30 per share in September 2020, the stock has fallen back and is essentially flat since its initial public offering (IPO) in August. However, with an end to the pandemic in sight, the stock may be ready to run.
About Rocket Companies
Rocket Companies, Inc, a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to online car purchasing platforms; and Rocket Loans, an online-based personal loans business. Read More
- Current Price
- Consensus Rating
- Ratings Breakdown
- 1 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $7.85 (0.8% Upside)