We recently published a list of 10 Stocks to Watch as Trade Wars Begin. In this article, we are going to take a look at where Rocket Companies Inc (NYSE:RKT) stands against other stocks to watch as trade wars begin.
Bill Strazzullo, Bell Curve Trading chief market strategist, said in a latest program on CNBC that the market isn’t done going down and urged investors not to buy every dip and wait for real opportunities. The analyst made some specific predictions about the market bottom:
“Still think it’s not over. I think you know probably across the board it’s another 15% to go to the downside. Look, the top wasn’t that difficult to call. It really wasn’t. And I think the bottom, typically on these major trends when they roll over, they do the same thing. They mean revert to fair value, which is a fancy way of saying that the market should drop down to where most of the trade activity has taken place on the major trend, which is the rally off the March 2020 lows.”
Strazzullo thinks the S&P 500 could fall to 4,500 to 4,100 before seeing a bottom. He repeatedly said during the interview that the market’s gains from the pandemic days are “tapped out.”
“The key driver here was the rally off the March 2020 lows in the height of the pandemic when we knew we were going to get historic monetary and fiscal stimulus. If you knew that, that was the right trend, you could have known months in advance when the market was going to top out. I gave the targets months in advance. If you missed this fundamentally or technically, you were asleep at the switch.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Wall Street is closely watching amid the US-China trade war. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A businessperson using a laptop to review the details of a mortgage loan for a client.
Rocket Companies Inc (NYSE:RKT)
Number of Hedge Fund Investors: 27
Josh Brown, CEO at Ritholtz Wealth Management, said in a recent program on CNBC that he’s buying mortgage, real estate, and personal finance services company Rocket Companies Inc (NYSE:RKT) shares. The analyst believes the company is set to benefit from potential interest rate cuts.
“Who benefits the most if we were to see five Fed rate cuts or even directionally if we got three or four? And the answer is obvious, you’re going to get a refi boom. You’re going to get action in the existing home sales market, and you’re going to see people take advantage of that, especially if they’re struggling in the economy. That’s exactly when you would get a refi. Boom happens every time. So Rocket is uniquely positioned. And they’re very—they’re very aggressive repositioning themselves for what could be. They’ve announced two acquisitions in the last month. One of them the other day is Mr. Cooper, which is the largest mortgage servicing companies in the country. And the other is Redfin, which gets 5.5 million unique users on the website. It’s a business of selling leads to realtors, but also that’s a huge funnel for Rocket to sell mortgages to the consumer through. So this is the type of company that benefits if mortgage rates come down meaningfully and we get a refi boom and we break that logjam of all of these homes not on the market that need to be. So that seemed really obvious to me.”
Seven Corners Capital stated the following regarding Rocket Companies, Inc. (NYSE:RKT) in its Q3 2024 investor letter:
“Rocket Companies, Inc. (NYSE:RKT), 9% position (Cost Basis: $8.24)
Rocket Companies, which was up 32% YTD in 2024, represents the newest large position in the SCC Composite Portfolio, having been purchased in December 2022. RKT represents a play on a future decline in mortgage rates if and when inflation becomes subdued again.
RKT shareholders should take a measure of comfort in the fact that the company is ultimately helmed by founder Dan Gilbert. who owns 1.85 billion shares of stock (on an as-converted basis) through Rock Holdings Inc.”
Overall, RKT ranks 10th on our list of stocks to watch as trade wars begin. While we acknowledge the potential of RKT as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RKT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
