Why Shares of Rocket Companies Are Rising This Week

For the week, shares of Rocket Companies (NYSE: RKT) traded roughly 15% higher as of market close Thursday after an analyst upgraded the stock and assigned it a bullish rating.

Wells Fargo analyst Donald Fandetti upgraded Rocket from an equal-weight rating to overweight and lifted his earnings per share estimate from $0.65 to $0.75 in 2023.

Rocket has been sold off intensely as rising mortgage rates have sent mortgage activity plummeting and crushed Rocket's gain-on-sale margins. The stock is down more than 40% this year even after the rally this week. But Fandetti thinks the selling could be nearing an end.

Source Fool.com