Rocket Stock Has Taken Off -- Here's What You Need to Know About the Business
While 2020 was the best year for mortgage originators in almost 20 years, the stocks of the mortgage originators have disappointed. Over the past six months, all of the big originators have underperformed the S&P 500. Investors are pretty much unwilling to pay more than a single-digit multiple for these stocks, and many have price-to-earnings ratios below 5. Companies report great numbers, and the market just sort of yawns.
That's why it was surprising when Rocket (NYSE: RKT) was up 11% on earnings -- and a lot more since then. Assuming this isn't entirely because Rocket has captured the attention of the WallStreetBets Reddit group, what's going on?
Source Fool.com
