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Rocket Companies (RKT) Soars 10.8%: Is Further Upside Left in the Stock?

Zacks Equity Research
·2 min read

Rocket Companies (RKT) shares rallied 10.8% in the last trading session to close at $10.78. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.8% gain over the past four weeks.

The stock is benefiting from the company’s continued investment in the Rocket Platform to increase consumers, boost conversion and decrease client acquisition cost.

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -131.3%. Revenues are expected to be $682.67 million, down 73.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

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For Rocket Companies, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on RKT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Rocket Companies is part of the Zacks Technology Services industry. Vimeo, Inc. (VMEO), another stock in the same industry, closed the last trading session 5.7% higher at $4.97. VMEO has returned 29.8% in the past month.

For Vimeo, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.15. This represents a change of -200% from what the company reported a year ago. Vimeo, Inc. currently has a Zacks Rank of #2 (Buy).

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Rocket Companies, Inc. (RKT) : Free Stock Analysis Report

Vimeo, Inc. (VMEO) : Free Stock Analysis Report

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Zacks Investment Research