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 to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RKT and that has 100x upside potential, check out our report about this cheapest AI stock.

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