Rocket Companies (RKT) has seen its shares rise over 80% in the past year, reflecting renewed investor confidence as it adapts to changing interest rate environments. This growth is particularly significant as the company is positioned as one of the nation’s largest mortgage originators, benefiting from a decline in 30-year mortgage rates from above 7% to the mid-5% range since early 2026. Analysts anticipate continued strengthening, with rates possibly dipping into the low-5% or 4% range if Federal Reserve easing persists.
In January 2026, the Trump administration announced that Fannie Mae and Freddie Mac would purchase up to $200 billion in mortgage-backed securities to reduce borrowing costs. This initiative is expected to enhance affordability and stimulate origination volumes for Rocket, which historically originates over $100 billion annually during peak years. For Q4 2025, consensus earnings per share (EPS) estimates are around $0.09, a significant turnaround from prior losses, with expected revenues near $2.3 billion—advances of 125% and 92.4%, respectively, year-over-year.
Currently, Rocket Companies holds a Zacks Rank #3 (Hold), with a trailing four-quarter average earnings surprise of over 35%. The company’s earnings ESP stands at +16.28%, indicating the potential for positive surprises in upcoming earnings reports.
