Is Rocket Companies’ Stock Overvalued or Undervalued?

Is Rocket Companies’ Stock Overvalued or Undervalued?
A screen shows a graph before the opening bell at the New York Stock Exchange (NYSE) at Wall Street on March 16, 2020. Johannes Eisele/AFP via Getty Images
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Rocket Companies Inc. shares have lagged the S&P 500 in 2021, generating a year-to-date total return loss of 28.5 percent.

Rocket stock has had a wild ride since its 2020 IPO, but investors may be wondering whether there’s any value in Rocket shares after the recent pullback.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value.