Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)50% (Hyper Growth)
EST. PRICE IN 2031
$28.94
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$17.97
22.5% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.1x Exit PE.
Valuation Analysis: RKT is currently trading at $13.93, which is considered fair relative to its 30-day fair value range of $13.37 to $14.51. The stock's valuation (Forward PE: 16.7) is in line with its historical norms (17.1). Remarkably, the market is currently pricing in an annual earnings decline of 0.7% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, RKT is in a strong uptrend. Immediate support is located at $13.29, while resistance sits at $15.18.
Market Sentiment: The stock scores a mixed 41/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $17.70 (+22.1%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$13.37 -
$14.51
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
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Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. Rocket Companies offers a wide array of services and products but is best known for its Rocket Mortgage business. The company's mortgage lending operations are split between its direct-to-consumer lending, which sees borrowers accessing the company's lending arm directly through either its mobile app or website, and its partner network where mortgage brokers and other firms use Rocket's origination process to offer loans to their customers. The company has rapidly gained market share in recent years and will also be the largest mortgage servicer in the US following its acquisition of the Mr. Cooper Group.
