Forecasting The Future: 8 Analyst Projections For Rocket Companies

Throughout the last three months, 8 analysts have evaluated Rocket Companies RKT, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $14.19, a high estimate of $16.00, and a low estimate of $10.00. Surpassing the previous average price target of $12.06, the current average has increased by 17.66%.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Rocket Companies by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Rocket Companies. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Rocket Companies compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Rocket Companies's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Rocket Companies's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Rocket Companies analyst ratings.

Get to Know Rocket Companies Better

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 is now the largest mortgage originator in the U.S. as well as the servicer for more than 2 million loans.

Rocket Companies: A Financial Overview

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, Rocket Companies showcased positive performance, achieving a revenue growth rate of 5.38% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Rocket Companies's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 0.1%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Rocket Companies's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.2%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Rocket Companies's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.01%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Rocket Companies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 9.1, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.