Rocket Companies encompasses mortgages, house-hunting, closing services, loans, and more.
High interest rates have not been good for business.
However, the company's future seems quite promising.
Shares of Rocket Companies (NYSE: RKT) were recently trading for $11.79 per share, not far from their 52-week low of $10.99. That's nearly 52% below the 52-week high of $24.36, and it's enough to make investors and would-be investors wonder: Is the stock now bargain-priced? Is something going on that would make it a sell?
Let's take a look.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
If you're intrigued, thinking it would be nice to have an aerospace business in your portfolio, think again. Rocket Companies is a real estate enterprise, encompassing Rocket Mortgage, Redfin, Rocket Close, Rocket Money, and Rocket Loans. The company notes that "J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for primary mortgage origination and mortgage servicing a total of 23 times -- the most of any mortgage lender."
The stock's valuation looks attractive, with a recent forward-looking price-to-earnings (P/E) ratio of 15, well below the five-year average of 23.
The business model is also attractive, as it's an online and app-based lender. Having no brick-and-mortar facilities can help maintain high profit margins. And like many companies, it has been adding artificial intelligence (AI) technologies to its offerings.
Interest rates these days are high, with the 30-year fixed-rate loan recently averaging 7.4%. But whenever they fall, that will boost Rocket's mortgage and refinancing business.
Meanwhile, the company is growing its market share and positioning itself for more growth.
Well, it's a volatile stock, so it's not for the faint of heart or risk-averse. Its beta, for example, was recently 2.25. Beta is a measure of volatility, with a beta of 1.0 suggesting that a stock will rise (or fall) by about as much as the overall market, and a beta above 1.0 indicating greater volatility.
I myself am not rushing to snap up shares right now, in part because I'm favoring dividend payers, but I think long-term investors who buy now may do well.
Before you buy stock in Rocket Companies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of October 11, 2026.
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Companies. The Motley Fool has a disclosure policy.