Is RKT a good stock to buy? We came across a bullish thesis on Rocket Companies, Inc. on Beyond the Noise’s Substack by Cristobal Botanch. In this article, we will summarize the bulls’ thesis on RKT. Rocket Companies, Inc.’s share was trading at $15.60 as of April 24th. RKT’s trailing and forward P/E were 213.57 and 20.00 respectively according to Yahoo Finance.
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Rocket Companies (RKT) is the largest mortgage platform in the United States operating as an originator that sells loans to institutional investors while retaining long-term servicing rights, which creates recurring fee income alongside upfront commissions. Following the acquisitions of Redfin and Mr Cooper in 2025, the company has evolved into an end-to-end home buying ecosystem spanning search, origination, and servicing.
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Despite this transformation, the stock has fallen about 22% year to date as investors still price it as a pure interest rate levered mortgage originator, ignoring the stabilizing impact of a roughly $5 billion annual servicing income stream. Recent results show underlying strength with adjusted EPS of 0.11 beating expectations by 22% and operating margins reaching 24%, the best since IPO, while integration synergies are ahead of schedule and management highlights efficiency gains doubling capacity with fewer employees.
The investment case hinges on re-rating as the market recognizes structural earnings power rather than cyclical rate sensitivity, with catalysts including May 7 earnings and confirmation that 19% margins are sustainable plus realization of $400 million Mr Cooper synergies driving margins toward 26% to 28%.
Risks remain if mortgage rates exceed 7.5% reducing origination volumes and compressing margins into the mid-teens though recurring cash flows provide resilience. Valuation scenarios imply a 12-month base case of $21, bull case $27 and bear $8, while 24-month outcomes extend to $24 per share base case upside range.
Previously, we covered a bullish thesis on Rocket Companies, Inc. (RKT) by Unemployed Value Degen in December 2024, which highlighted mortgage-fintech positioning, potential home equity-driven demand, servicing portfolio resilience, cost discipline, and upside from refinancing cycles. RKT’s stock price has appreciated by approximately 10.01% since our coverage. Cristobal Botanch shares a similar view but emphasizes on acquisition-led ecosystem expansion, recurring servicing income, and margin re-rating catalysts.
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