Is Rocket Companies a Buy Even if the Stock Market Crashes?

Rocket Companies (NYSE: RKT) made its public debut in early August with much promise. After pricing its IPO at $18 a share and raising $1.8 billion in cash, optimism surrounding the parent of Quicken Loans and Rocket Mortgage sent the stock price nearly 50% higher by the start of September -- only for it to be grounded again after its second-quarter 2020 earnings report failed to fuel further upside.

As of this writing, Rocket stock trades for a meager 9.4 times trailing-12-month earnings. It looks like a real bargain, one that would even be worth buying if the market has tough times ahead of it. However, "cheap" is generally cheap for a reason.

Rocket's services have become synonymous with tech-driven home loans online, a growing industry. But it's also a highly cyclical industry that goes through bouts of contraction, which means much leaner times lie ahead for Rocket at some point.

Source Fool.com