Rocket Companies (RKT) does not appear to be a good stock at this time. Here's why:
- Analyst Ratings and Price Targets: The stock has been given a "Moderate Sell" rating by analysts, with 12 analysts offering price targets over the last 3 months1. The average price target is $11.70, which represents a -17.14% downside from the last price of $14.12. This suggests that analysts are bearish on the stock.
- Financial Performance: The company has shown a significant earnings surprise, with the EPS estimate for the current quarter being $0.05, and the actual EPS being $0.04, resulting in a 300.00% surprise2. However, the revenue estimates have been consistently exceeded, with the actual revenue for the last quarter being $1.22 billion, surpassing the estimated $1.11 billion2.
- Stock Performance: The stock has experienced a volatile year, with a significant increase in price from its lowest of $7.17 to its highest of $15.603. However, it is currently trading at $13.27, which is below its 52-week high and the average analyst price target.
- Market Sentiment: The stock's market capitalization has fluctuated, with a recent intraday value of $30.803 billion4. The beta is 2.40, indicating higher volatility than the broader market4. The price-to-earnings ratio (TTM) is 8.60, which is relatively high, suggesting that the stock may be overvalued based on its earnings4.
In conclusion, while Rocket Companies has shown some positive revenue performance, the bearish analyst ratings, the recent trading price below analyst price targets, and the high volatility suggest that RKT is not a good stock at this time. Investors should exercise caution and consider these factors before making an investment decision.