I remember talking to an older investor before the Rocket Companies (NYSE: RKT) initial public offering in August 2020, and I asked him for his thoughts on the stock's potential. He said mortgage bankers will always break your heart.
After seeing the stock of so many mortgage banking firms, including Rocket, get pummeled over the past year or so, it's easy to see why he would think that way. Rocket stock is trading down nearly 68% from its 52-week high but is trading basically flat year to date. Is it time to consider this stock as a turnaround play? Or is it time to give up on its potential for outsized growth?
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Rocket's Earnings Report Shows Why Mortgage Bankers Don't Get Big Multiples