Winners And Losers Of Q1: Rocket Companies (NYSE:RKT) Vs The Rest Of The Thrifts & Mortgage Finance Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at thrifts & mortgage finance stocks, starting with Rocket Companies (NYSE:RKT).

Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.

The 22 thrifts & mortgage finance stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 17.7%.

In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results.

Rocket Companies (NYSE:RKT)

Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE:RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.

Rocket Companies reported revenues of $1.04 billion, down 25% year on year. This print fell short of analysts’ expectations by 15.2%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.

"We entered 2025 with strength, delivering $1.3 billion in adjusted revenue, at the high end of our guidance range in the first quarter. This demonstrates the power of the Rocket platform and our ability to execute in any market," said Varun Krishna, CEO and Director of Rocket Companies.

Interestingly, the stock is up 14.3% since reporting and currently trades at $13.30.

Read our full report on Rocket Companies here, it’s free.

Best Q1: Northwest Bancshares (NASDAQ:NWBI)

Founded in 1896 and operating across Pennsylvania, New York, Ohio, and Indiana, Northwest Bancshares (NASDAQ:NWBI) is a bank holding company that operates Northwest Bank, providing personal and business banking, investment management, and trust services.

Northwest Bancshares reported revenues of $156.2 million, up 19% year on year, outperforming analysts’ expectations by 9.9%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ net interest income estimates.

The market seems happy with the results as the stock is up 16.3% since reporting. It currently trades at $13.73.

Is now the time to buy Northwest Bancshares? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Ladder Capital (NYSE:LADR)

Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE:LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.

Ladder Capital reported revenues of $51.28 million, down 18.9% year on year, falling short of analysts’ expectations by 7.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 6% since the results and currently trades at $11.30.

Read our full analysis of Ladder Capital’s results here.

PennyMac Mortgage Investment Trust (NYSE:PMT)

Operating as a real estate investment trust since 2009 to maintain tax advantages, PennyMac Mortgage Investment Trust (NYSE:PMT) is a specialty finance company that invests in mortgage-related assets and operates a correspondent lending business.

PennyMac Mortgage Investment Trust reported revenues of $44.47 million, down 40.1% year on year. This result lagged analysts' expectations by 52.7%. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ EPS estimates and a slight miss of analysts’ tangible book value per share estimates.

The stock is down 3.5% since reporting and currently trades at $12.68.

Read our full, actionable report on PennyMac Mortgage Investment Trust here, it’s free.

Mr. Cooper Group (NASDAQ:COOP)

Born from the 2018 merger of Nationstar Mortgage and WMIH Corp, Mr. Cooper Group (NASDAQ:COOP) is a non-bank servicer of residential mortgage loans that collects payments, manages escrow funds, and performs loss mitigation activities for 4.6 million customers.

Mr. Cooper Group reported revenues of $560 million, flat year on year. This number came in 9.1% below analysts' expectations. It was a disappointing quarter as it also produced a significant miss of analysts’ tangible book value per share estimates and EPS in line with analysts’ estimates.

The stock is up 7.2% since reporting and currently trades at $141.50.

Read our full, actionable report on Mr. Cooper Group here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.