Josh Brown Calls Rocket Companies (RKT) a Clear Buy in a Rate Cut Environment

Analyzing Rocket Companies Inc (NYSE:RKT) in Today’s Volatile Market

As the landscape of trade wars shifts, investors are keenly focused on certain stocks poised for potential gains. Recently, we discussed 10 Stocks to Watch as Trade Wars Begin, and today, we’re diving deeper into Rocket Companies Inc (NYSE:RKT) to see how it measures up against its peers.

Market Insights from Experts

Bill Strazzullo, Chief Market Strategist at Bell Curve Trading, recently emphasized that the downward pressure on the market isn’t over. In an interview with CNBC, he cautioned investors against rushing to buy every dip, highlighting that there are better opportunities on the horizon. His forecasts suggest that the S&P 500 could retreat to between 4,100 and 4,500 before reaching a bottom, underscoring a period of necessary market adjustment.

Strazzullo noted:

“Still think it’s not over. I think you know probably across the board it’s another 15% to go to the downside… the market should drop down to where most of the trade activity has taken place.”

His comments serve as a reminder that understanding market fundamentals and trends is crucial for making informed investment decisions.

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Hedge Fund Investments: A Crucial Indicator

Our research indicates that stocks with significant backing from hedge funds often outperform the market. This insight inspired our latest analysis, where we closely monitored 10 stocks that Wall Street is keeping an eye on during the ongoing US-China trade war.

Notably, Rocket Companies has caught the attention of 27 hedge funds, which reflects the growing confidence in its business model. Why does this matter? By aligning your investment strategy with top hedge fund picks, as documented in our quarterly newsletter—which has delivered a remarkable 373.4% return since May 2014—you can significantly enhance your prospects for outperforming common benchmarks.

Strategic Moves by Rocket Companies (RKT)

Josh Brown, CEO of Ritholtz Wealth Management, has signaled his bullish stance on Rocket Companies, citing its potential to thrive in a declining interest rate environment. He remarked:

“Who benefits the most if we were to see five Fed rate cuts? Rocket is uniquely positioned… to benefit from a refi boom.”

Brown’s analysis is supported by Rocket’s recent acquisitions aimed at bolstering its market position. The company has strategically acquired Mr. Cooper, one of the largest mortgage servicing companies, and Redfin, which has a substantial online presence. Such moves indicate Rocket’s aggressive strategy to harness opportunities tied to shifting consumer behaviors in the mortgage sector.

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The Bigger Picture: Is RKT the Best Bet?

While Rocket Companies ranks 10th in our list of stocks to watch, we believe that emerging technologies, specifically in AI, could offer more lucrative returns in a shorter timeframe. For instance, an AI stock has shown growth since the beginning of 2025, while many well-known AI stocks have declined by around 25%.

Investors seeking alternatives should consider our report on the cheapest AI stock, a compelling option currently trading at under five times its earnings.

What’s Next?

As we navigate this dynamic market, we encourage you to stay informed about both traditional and emerging investment opportunities. For further insights, explore our detailed reports on 20 Best AI Stocks To Buy Now and the 30 Best Stocks to Buy Now According to Billionaires.

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