Why Rocket Companies (RKT) Is Among the Top Performing Stocks on Wednesday?

We recently published a list of The Top 10 Performing Stocks on Wednesday. In this article, we are going to take a look at where Rocket Companies, Inc. (NYSE:RKT) stands against other top performing stocks on Wednesday.

Wall Street’s three major indices finished in the green territory on Wednesday as investors continued to digest news of President Donald Trump’s tariff rollout on imports.

The tech-heavy Nasdaq finished the day strongest, adding 0.87 percent. The S&P 500 grew 0.67 percent, while the Dow Jones was up 0.56 percent.

Ten individual stocks mirrored a broader market optimism, closing the day in the green amid a series of corporate developments that sparked buying appetite.

In this article, we named Wednesday’s top performers and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

Rocket Companies, Inc. (NYSE:RKT)

Rocket Companies, Inc. (NYSE:RKT) surged by 10 percent on Wednesday to finish at $13.86 apiece following Deutsche Bank’s bullish rating for the company.

On Wednesday, the investment bank upgraded Rocket Companies (NYSE:RKT) to Buy from Hold and reaffirmed its $16 price target.

Deutsche Bank said the upgrade was based on RKT’s $9.4-billion acquisition of Mr. Cooper Group, a move that it said could significantly bolster its market share and earnings.

Additionally, Deutsche Bank said the strategic purchase was a step towards Rocket Companies (NYSE:RKT) ’s goal of gaining 20 percent of the US mortgage borrowing market by 2027. He said that the acquisition could largely benefit the company through more stable revenues across economic cycles and propel its earnings per share to 38 percent over the next two years.

Overall, RKT ranks 5th on our list of top performing stocks on Wednesday. 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 as promising as RKT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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