timothy sykes logo
RKT Stock Eyes Upside As Rocket Mortgage Bets On VantageScore Thumbnail

RKT Stock Eyes Upside As Rocket Mortgage Bets On VantageScore

JACK KELLOGG•UPDATED OCT. 1, 2026, 4:47 PM ET
Reviewed by Tim Sykesand Fact-checked by Ellis Hobbs

Rocket Companies Inc. stocks have been trading up by 4.26 percent following strong mortgage origination growth and upbeat guidance.

Key Takeaways

  • Rocket Mortgage, part of Rocket Companies, will become the first major U.S. lender to use VantageScore 4.0 as its preferred model for eligible GSE and VA loans, targeting more approvals and lower score costs.
  • The RKT mortgage unit will roll VantageScore 4.0 across most direct‑to‑consumer mortgages sold to Fannie Mae, Freddie Mac and VA, while still using FICO for higher‑risk or non‑conforming products.
  • Keefe Bruyette says near‑7% 30‑year mortgage rates are crushing volumes but keeps an Outperform call on Rocket Companies, pointing to servicing strength and attractive risk/reward.
  • Redfin data inside Rocket Companies shows a powerful buyer’s market, with 21% of sellers cutting asking prices and nearly half of buyers landing concessions, pressuring volumes but supporting Rocket’s integrated tools.
  • Pending home sales tracked by Redfin, now under Rocket, just hit a three‑year low even as prices still rise modestly, underlining the tough backdrop RKT is trading through.

Candlestick Chart

Live Update At 16:47:04 EDT: On Thursday, October 01, 2026 Rocket Companies Inc. stock [NYSE: RKT] is trending up by 4.26%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

RKT has been grinding lower for weeks, but the tape is starting to show a possible shift. In mid‑September, Rocket Companies traded near $13.80–$14.00. By the latest session, RKT closed around $11.97 after dipping as low as $11.25 intraday. That is roughly a 13% slide from the recent high, a classic pullback zone many momentum traders watch for potential bounces.

Intraday action in RKT tells an important story. The stock opened near $11.42, shook out down to the low $11.30s in the morning, then slowly stair‑stepped higher, closing right under $12. Buyers defended every dip below $11.50 and absorbed supply into the close. That kind of intraday recovery often signals accumulation, not panic.

On the fundamentals, Rocket Companies posted about $6.26B in revenue over the last year, but the price‑to‑earnings ratio near 53.1 shows traders are paying up for a recovery story, not cheap value. The price‑to‑sales multiple around 3.7 and price‑to‑book near 1.4 keep RKT in “reasonable growth” territory versus many fintech peers. Leverage is real, with total debt‑to‑equity at 1.16, but return on equity above 3% and positive profit margins show the machine is still generating cash through this brutal housing cycle.

For active traders, that combo—pullback on the chart, real earnings, and a stretched but not insane valuation—sets RKT up as a classic “story plus setup” name, especially with fresh catalysts hitting the news tape.

Why Traders Are Watching RKT’s Credit Shift

The big catalyst now driving RKT chatter is strategy, not just charts. Rocket Mortgage, the flagship unit of Rocket Companies, is stepping out front as the first major U.S. home lender to adopt VantageScore 4.0 as its preferred credit scoring model for all eligible loans heading to Fannie Mae, Freddie Mac and the VA. That is not a cosmetic tweak. Internal testing showed more borrowers got approved and many qualified for better pricing, while Rocket’s own credit‑score costs went down.

For traders, this is leverage. If RKT can approve more qualified borrowers in a slow market, it expands its addressable pool when rivals are stuck. Rocket Companies is also rolling VantageScore 4.0 across its core direct‑to‑consumer mortgages, but keeping FICO on the more complex or higher‑risk products. That tells you this is not reckless; it is a calibrated shift aimed at prime‑ish borrowers where the new model shines.

At the same time, the macro backdrop is ugly. Keefe Bruyette points out that 30‑year mortgage rates around 6.95% are crushing both purchase and refi volumes. Yet the firm still tags Rocket Companies with an Outperform rating, emphasizing servicing‑heavy names like RKT for better risk/reward. Servicing earns fees on existing loans; it benefits when loans stay on the books longer in a high‑rate world.

Redfin, now embedded inside Rocket Companies as a tech brokerage, reinforces how weird this market is. Pending home sales are down 3.5% week over week to a three‑year low. Nearly half of buyers are getting concessions, and 21% of sellers cut asking prices in late September. But prices still rose 0.25% month over month and 3.7% year over year in August, supporting collateral values and the servicing book that RKT depends on.

Traders should see the pattern: macro volumes are weak, but Rocket Companies is pushing hard on data, tech, and credit innovation to grab share when the cycle eventually turns. That mix of pain plus preparation is exactly where multi‑month swing trades are often born.

Conclusion

RKT is not a sleepy, rate‑sensitive bank stock anymore. Rocket Companies has morphed into an integrated housing platform that stretches from home search with Redfin to mortgage approval with Rocket Mortgage and even lifestyle content, like Redfin’s dog‑walking city guides built with Rover. Those guides will not move earnings this quarter, but they keep users inside the Rocket Companies ecosystem, feeding the top of the funnel for later mortgage and brokerage business.

The real near‑term story for RKT is how those tools interact with a buyer‑skewed, slow housing market. High mortgage rates mean fewer deals and thinner origination revenue today. At the same time, stable or rising home prices protect book value and servicing income. By adopting VantageScore 4.0 ahead of competitors, Rocket Companies is signaling it wants to win the next up‑cycle, not just survive this one.

For traders, that means RKT is a classic battleground name: a pressured chart, a leveraged balance sheet, but also clear strategic moves that can change the numbers fast if volumes rebound. As Tim Sykes likes to remind his community, “Patterns repeat because human nature doesn’t change—your job is to spot the setup early, manage risk, and never fall in love with a stock.” As millionaire penny stock trader and teacher Tim Sykes, says, “Cut losses quickly, let profits ride, and don’t overtrade.”. Apply that mindset to Rocket Companies: study the VantageScore catalyst, watch how RKT behaves around this $12 zone, and let the price action—not the hype—tell you when the next high‑probability trade is there. This analysis is for educational and research purposes only, not investment advice.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:


How much has this post helped you?



Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”