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    Rocket Companies (RKT): Assessing Valuation After a 79% Year-to-Date Share Price Rebound

    Simply Wall St·12/25/2025 18:14:23
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    Rocket Companies (RKT) has quietly kept climbing, and with the stock up roughly 79% this year, investors are asking whether the move still makes sense or if expectations are running ahead of reality.

    See our latest analysis for Rocket Companies.

    The recent run has been powered less by flashy headlines and more by shifting sentiment, as investors warm to Rocket Companies’ improving revenue trends and housing market resilience. A 79.26% year to date share price return and 209.54% three year total shareholder return underscore the building momentum.

    If this kind of rebound has you rethinking your watchlist, it might be worth scanning fast growing stocks with high insider ownership for other fast moving names with skin in the game.

    With the shares now hovering just below analyst targets after a powerful rebound, the key question for investors is simple: Is Rocket Companies still undervalued, or is the market already pricing in its future growth?

    Most Popular Narrative Narrative: 2.3% Undervalued

    With Rocket Companies last closing at $19.45 against a most popular narrative fair value of $19.92, the story hinges on aggressive profit and growth assumptions.

    The analysts have a consensus price target of $17.167 for Rocket Companies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $25.0, and the most bearish reporting a price target of just $12.0.

    Read the complete narrative.

    Curious how a currently unprofitable lender ends up with rich future margins and a premium earnings multiple more typical of mature compounders? The full breakdown reveals the bold revenue ramp, margin reset, and valuation multiple that power this near term fair value, plus the long range earnings leap the narrative is banking on.

    Result: Fair Value of $19.92 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, the bullish case could unravel if housing affordability worsens or fintech competition intensifies, which could squeeze Rocket’s margins and temper its ambitious growth targets.

    Find out about the key risks to this Rocket Companies narrative.

    Build Your Own Rocket Companies Narrative

    If you see the assumptions differently or want to dig into the numbers yourself, you can build a custom view in just minutes with Do it your way.

    A great starting point for your Rocket Companies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

    Looking for your next investing edge?

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.