Rocket Companies (RKT) Gets Buy Rating From Jefferies, Acquisitions Highlighted

Rocket Companies Inc. (NYSE:RKT) ranks among the best stocks under $25 to buy now. On December 19, Jefferies initiated coverage of Rocket Companies Inc. (NYSE:RKT), with a Buy rating and a $25 price target. The firm sees Rocket Companies Inc. (NYSE:RKT) as a vertically integrated system that will retain customers throughout the whole home purchase cycle, from browsing to signing and loan servicing.

Jefferies believes Rocket Companies Inc. (NYSE:RKT) shares may not yet represent the company’s increased earnings power, resilience, and competitive stance as a result of its acquisitions of Mr Cooper and Redfin, which concluded in the fourth and second quarters of 2025.

Mr. Cooper’s acquisition brought together America’s leading mortgage originator and the nation’s premier servicer. This merger produces a significant driving influence, with a combined service portfolio approaching 10 million clients and accounting for one in every six US mortgages.

Given Rocket’s structural advantages in data, scale, technology, and distribution, Jefferies anticipates that the company’s earnings per share in a normalized $2.5 trillion annual mortgage market will surpass current consensus projections.

Rocket Companies Inc. (NYSE:RKT) provides a range of mortgage, real estate, and personal finance services in the US and Canada. It operates through two segments: Direct to Consumer and Partner Network.

While we acknowledge the potential of RKT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

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