Why Rocket Companies Stock Is Flying Higher Today

Source Motley_fool

Shares of Rocket Companies (NYSE: RKT) are soaring on Wednesday. The mortgage company's stock gained 11.3% as of 11:50 a.m. ET and was up as much as 15.7% earlier in the day. The jump comes as the S&P 500 and Nasdaq Composite showed modest gains.

A major Wall Street bank upgraded the stock following a recent acquisition announcement.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

Deutsche Bank says it's a buy

Deutsche Bank analyst Mark DeVries gave Rocket a boost, upgrading the stock from a hold to a buy and raising his price target to $16 from $14. DeVries cited the company's $9.4 billion acquisition of Mr. Cooper Group, a major home-loan servicer, which it announced just days ago.

The analyst believes that the acquisition puts Rocket on track to meet its ambitious 2027 market-share targets like capturing 20% of the refinance market. According to DeVries, the deal could provide "38% [earnings per share] accretion in 2027" while also reducing the company's earnings volatility throughout market cycles due to the $1.5 trillion of loans Rocket will gain from Mr. Cooper Group.

The stock carries a premium

The combination of these two mortgage giants creates a company with significant market share in both origination and servicing, making the company more resilient in different markets. There are, however, some inherent risks with such a large acquisition; it's no small task to integrate the two.

Furthermore, Rocket's stock looks pretty expensive compared to the competition even with the added earnings from the acquisition. I would stay away from it for the time being.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $285,647!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,315!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $500,667!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 1, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
WTI drifts higher above $69.00 on Venezuela supply worriesWest Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.15 during the early Asian session on Wednesday.
Author  FXStreet
3 Month 26 Day Wed
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.15 during the early Asian session on Wednesday.
placeholder
GameStop's plan to issue $1.3 billion convertible notes to buy Bitcoin could boost crypto market and meme coinsVideo game retailer GameStop announced on Wednesday that it plans to issue senior convertible note offerings worth $1.3 billion.
Author  FXStreet
3 Month 27 Day Thu
Video game retailer GameStop announced on Wednesday that it plans to issue senior convertible note offerings worth $1.3 billion.
placeholder
Crude oil price today: WTI price bearish at European openingWest Texas Intermediate (WTI) Oil price falls on Thursday, early in the European session.
Author  FXStreet
3 Month 27 Day Thu
West Texas Intermediate (WTI) Oil price falls on Thursday, early in the European session.
placeholder
Gold price falls as markets reposition on Trump’s tariffs, the highest in over 100 yearsGold price (XAU/USD) falls after initially hitting a fresh all-time high at $3,167 in the early Asian session. Traders are starting to take profit, pushing the Bullion price to $3,130 at the time of writing on Thursday.
Author  FXStreet
4 hours ago
Gold price (XAU/USD) falls after initially hitting a fresh all-time high at $3,167 in the early Asian session. Traders are starting to take profit, pushing the Bullion price to $3,130 at the time of writing on Thursday.
placeholder
Silver price today: Silver falls, according to FXStreet dataSilver prices (XAG/USD) fell on Thursday, according to FXStreet data.
Author  FXStreet
4 hours ago
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data.
goTop
quote