
RKT Stock Forecast & Price Target
RKT Analyst Ratings
Bulls say
Rocket Companies has demonstrated a solid financial performance with a book value increase of 8% quarter-over-quarter, reaching $4.56, while total servicing UPB rose to $593 billion, reflecting a 9% increase from the previous quarter and a 17% increase year-over-year. The company's strategic focus on expanding its market share, evidenced by a 10% year-over-year increase in its internal purchase pipeline and growth in its purchase share to 4.0%, positions it well for future opportunities in the mortgage sector. Additionally, significant advancements in AI-powered automation have enhanced operational efficiency, resulting in approximately $40 million in savings and an impressive 54% year-over-year increase in client servicing capacity in the fourth quarter.
Bears say
Rocket Companies is experiencing seasonal weakness in mortgage originations, particularly noted in January 2025, with management expecting a gradual recovery in activity by February. The company's operating expenses for F4Q24 were below forecasts, yet the fundamental outlook remains cautious, with a projected stagnation in gross origination system (GOS) margins and reduced earnings per share estimates for 2025 through 2027. Additionally, the risk/reward profile for Rocket Companies' stock appears unfavorable, as the potential for significant downside in share price persists, driven by industry volume concerns and a challenging operating environment.
This aggregate rating is based on analysts' research of Rocket Companies, Inc. and is not a guaranteed prediction by Public.com or investment advice.
RKT Analyst Forecast & Price Prediction
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