Regardless of how good the micro economic conditions are for RKT, it has to trade within a terrible macro environment. We just saw a 10% drop in mere hours and this could be just the beginning. If the markets overall correct, Rocket will too. Consequently, it is important to acknowledge that there is risk to Rocket stock to no fault of its own. We still have millions of Americans out of work and GDP is shrinking. While stocks have recovered from the quarantine bottom, the economy has not. Current Economic Conditions Are a Short Term Factor But the point is to take advantage of the opportunity that exists for the next few years. Weather Rocket stock recovers its highs now or in 12 months is unclear. Furthermore, they can also assume that if they can break above $26, then buyers will chase the momentum higher. The bulls can assume that there is support between $21 and $22 per share. From its wild range I can pick $25 and $22 per share as two important short term levels. It now sits just below the midpoint of the entire range, and just above the most recent support level. RKT Stock Chart Shows Support Below and Opportunity Above Either way, RKT stock will benefit from that. People love to use home equity as an ATM machine for big ticket spending like buying cars or installing pools. This means that the refinancing activity will also remain high for as long as rates are low. Thanks to the stringent lending rules after the 2008 crash, the loan-to-values now are still low. InvestorPlace - Stock Market News, Stock Advice & Trading Tipsħ Sin Stocks to Buy Now as America Reopens Moreover, the quarantine benefited RKT because everyone is using online processes. Federal Reserve has dug itself a hole where it needs to suppress rates for decades. There will be demand for its services for years to come. This is an environment conducive for a company like Rocket to flourish. Borrowing costs have never been lower or for this long. Thanks to central banks keeping rates near zero it has been cheap to transact in real estate. We don’t have many guides for Rocket but we can borrow from its industry. Buy it for the long term because the upside potential is larger than the downside risk. Since it is still so young it doesn’t have any fundamental metrics, so the thesis is easy. Rocket Companies (RKT) Mortgage company on smartphone in dark room
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