The U.S. housing market has been stagnant due to high rates and inflated prices, straining affordability. However, President Trump’s plan to have Fannie Mae and Freddie Mac buy $200 billion in mortgage-backed securities has led to a sharp drop in mortgage rates, revitalizing discussions on demand and refinancing.

Rocket Companies, a digital mortgage platform, saw its stock rise nearly 10% as mortgage stocks rallied. With a market capitalization of $49 billion, Rocket aims to simplify the mortgage process and personal finance using technology and data analytics, catering to the modern consumer’s needs.

Rocket’s recent performance has been impressive, with its stock surging 125.49% over the past 52 weeks. The company’s third-quarter revenue grew by 148% year-over-year, reaching $1.61 billion, driven by mortgage origination volumes increasing by 13.7% and gain-on-sale margins improving to 2.80%.

Despite the positive momentum, Rocket’s stock is trading at about 100.8 times forward adjusted earnings, signaling a premium valuation. Analysts have mixed views on the company’s future trajectory, with expectations for earnings to decline in the near term but rebound significantly in fiscal 2026.

JPMorgan has resumed coverage of Rocket Companies with a “Neutral” rating and a $24 price target, highlighting the company’s expanded ecosystem. While analysts are generally bullish on RKT stock, caution is advised due to the stock possibly pricing in future growth beyond near-term catalysts like falling interest rates and market share gains.

Read more at Yahoo Finance: Rocket Stock Just Hit a New 3-Year High as Trump Touts Plan for Home Affordability. Should You Buy RKT Here?