Why Rocket Companies, Inc. (RKT) Soared on Friday

We recently compiled a list of the Wall Street Optimism Spills Over to These 10 Stocks on Friday. In this article, we are going to take a look at where Rocket Companies, Inc. (NYSE:RKT) stands against the other stocks.

Wall Street finished the trading week stronger, posting gains by more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.

Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.

The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.

The broader market optimism spilled into individual stocks, with 10 companies ending the trading session with strong gains. In this article, we have detailed the reasons behind their impressive performance.

To come up with Friday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

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Rocket Companies, Inc. (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT)’s share prices rose by 9.12 percent on Friday to finish at $14 apiece following a stellar earnings performance last year.

In a statement, Rocket Companies, Inc. (NYSE:RKT) said it swung to a net income of $649 million in the fourth quarter of 2024 from a $233 million net loss in the same period a year earlier, as well as to a net profit of $636 million in full-year 2024 from a $390 million net loss in 2023.

Revenues for the quarter expanded by 155 percent to $1.769 billion from $694 million year-on-year, while revenues for the same comparable year increased by 34 percent to $5.1 billion from $3.799 billion.

Looking ahead, Rocket Companies, Inc. (NYSE:RKT) CEO Varun Krishna posted an optimistic outlook for the company, saying it gained momentum heading into 2025 with the launch of its unified Rocket brand and rocket.com platform.

Rocket Companies, Inc. (NYSE:RKT) expects revenues in the first quarter of the year to settle between $1.175 billion and $1.325 billion.

Overall RKT ranks 7th on our list of Friday’s top gainers. While we acknowledge the potential of RKT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RKT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.