Rocket Companies' 15-min chart signals RSI overbought, Bollinger Bands narrowing.

Rocket Companies' 15-minute chart has triggered an RSI overbought signal, coupled with narrowing Bollinger Bands as of July 31, 2025 at 14:45. This indicates that the stock price has risen excessively and exceeds the fundamental support, with the magnitude of price fluctuations decreasing.

Rocket Companies (NYSE: RKT) is set to unveil its second-quarter 2025 earnings report after today's closing bell. Analysts are expecting modest revenue growth but a significant drop in earnings per share (EPS). The company's Q2 revenue is projected to reach $1.23 billion, reflecting a 4.2% year-over-year (Y/Y) growth rate. However, EPS is expected to fall to $0.03, a 50% decline from the $0.06 reported last year [1].

The upcoming earnings report is likely to provide updates on the company's significant acquisition of Mr. Cooper Group, which is expected to close in Q4 2025. This acquisition is a cornerstone of Rocket's strategy to create an integrated homeownership platform. "We are building a comprehensive ecosystem that simplifies the homeownership journey," a Rocket Companies spokesperson stated, emphasizing the long-term vision behind the acquisitions [1].

Analysts at Jefferies recently revised their price target on Rocket's stock, raising it from $11.50 to $14. However, they maintained a Hold rating, expecting the Mr. Cooper acquisition to add to EPS over the coming years [1]. The mortgage industry's challenges, stemming from fluctuating interest rates and a fragmented housing market, have prompted a cautious outlook from Rocket.

Despite the cautious outlook, Rocket Companies' stock has added 35% since the turn of the year, yet remains 9.5% below the same point 12 months ago. There have been 5 downward revisions to EPS estimates in the month leading into today's earnings, with 2 analysts revising to the upside [1].

Additionally, Rocket Companies has invested heavily in artificial intelligence (AI) to enhance operational efficiency and customer experience. AI tools have reportedly led to a 50% reduction in remediation costs and are projected to save over $1 million in 2025. Furthermore, AI has enabled a 50% increase in clients served per production team member [1].

On the other hand, Rocket Lab's stock has experienced a significant drop, falling 5.29% intraday to $44.92, breaking below its 30-day moving average. The drop was sparked by a confluence of technical breakdowns and sector-wide quantum tech developments. The X-37B space plane's OTV-8 launch announcement has ignited sector-wide enthusiasm for quantum navigation and laser comms, yet Rocket Lab's stock has diverged sharply. The intraday low of $44.41 indicates a retesting of long-term support [3].

References:
[1] https://www.asktraders.com/analysis/rocket-companies-earnings-approach-analysts-mixed-on-outlook-rkt/
[2] https://finance.yahoo.com/news/rocket-companies-rkt-stock-trades-182616197.html
[3] https://www.ainvest.com/news/rocket-lab-plunges-5-8-space-stock-losing-altitude-2507/