$RKT under pressure: Zacks Research downgraded the stock from Hold to Strong Sell (Oct 1), hitting sentiment. Despite the $14.2B Mr. Cooper deal, analysts see it 18.6% overvalued (fair value $16.20). Trading at a P/E of -387.6, raising serious profitability concerns.

$RKT is steadily gaining market share — well-positioned to boost revenue if interest rates decline. I look this company 👀

Analysts expect slower growth for Rocket $RKT in 2025, but a strong rebound in 2026 — driven largely by the impact of more favorable interest rates.

$RKT

🔹 Adj Revenue: $1.34B (Est. $1.27B) 🟢; UP +9.1% YoY

🔹 Adj EPS: $0.04 (Est. $0.026) 🟢; DOWN -33% YoY

🔹 Adj EBITDA: $172M (Est. $129.3M) 🟢

🔹 Net Rate Lock Volume: $28.43B (Est. $27.41B) 🟢; +13% YoY

🔹 Closed Loan Origination Volume: $29.1B (Est. $28.2B) 🟢; UP +18% YoY

🔹 Gain on Sale Margin: 2.80%; -19bps YoY

Q3 Guidance:

🔹 Sees Adjusted Revenue: $1.60B to $1.75B

Segment Performance – Q2

🔹 Direct to Consumer Adjusted Revenue: $1.01B; UP +11.1% YoY

🔹 Partner Network Adjusted Revenue: $148M; DOWN -21.3% YoY

🔹 Direct to Consumer Sold Loan Gain on Sale Margin: 4.40% (vs. 4.14% YoY)

🔹 Partner Network Sold Loan Gain on Sale Margin: 0.90% (vs. 1.59% YoY)

Other Metrics

🔹 Total Liquidity: $9.1B (includes $5.1B in cash)

🔹 Servicing Portfolio: $609B UPB across 2.8M loans

🔹 Mortgage Servicing Rights (MSR): $7.57B

CEO Commentary

🔸 “Rocket delivered a standout second quarter, exceeding the high end of guidance… Our purchase funnel is expanding, conversion rates are rising, and Redfin clients are beginning to close with Rocket.” – CEO Varun Krishna

Strategic & Operational Updates

🔸 Closed all-stock acquisition of Redfin; expanding integrated offerings

🔸 Introduced AI-powered refinance tools: complete end-to-end refi in under 30 minutes

🔸 Launched AI agent for earnest money deposits – processes 80% automatically

🔸 Released Rocket Preferred Pricing: 1% rate discount or up to $6K credit for Redfin-linked buyers

🔸 Expanded bridge loan offering for homeowners to buy before selling

🔸 Named #1 in mortgage servicing by J.D. Power for 11th time

🔸 Hosted largest company hackathon – showcased AI, vector search, and cloud tech

🔸 Wind-down of Rocket Mortgage Canada & Visa Signature credit card program

Gotta love it when a stock pick moves so consistant🥲

See you at 20 about 5 years, maybe😂?

At least short term is bullish thanks to a special dividend of 1.01 dollars/share. We will probably see a continued interest till 8 March when it's wx-dividend.

I hope it goes high enough so I can sell B/E or with some minimal profit.

Averaging down one last time. Now I wait.