Josh Brown says Rocket Companies is down, but the stock could rise after a series of recent acquisitions. The fintech and home ownership services company is down about 20% since the start of the year, despite a broader rise in real estate prices. But that doesn’t mean there’s more downside ahead, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said Tuesday on CNBC’s “Halftime Report.” “This is a company that spent the core winter of mortgages making acquisitions,” Brown said. “And now, with this combination of assets, I think the CEO is on the right track. What he wants to build is a dominant mortgage-to-home platform.” Last October, Lockett completed the acquisition of leading mortgage servicer Mr. Cooper for more than $14 billion. After the deal, Rockett serves approximately 10 million homeowners. This is in addition to the acquisition of real estate brokerage platform Redfin, which was completed a few months ago. As the real estate industry recovers, Rocket seems poised for a rebound. The State Street Real Estate Select Sector SPDR ETF is up 7% year-to-date. If the U.S. Federal Reserve cuts interest rates again or U.S. Treasury yields return to pre-Iran war levels, stocks in the sector, including rocket stocks, could see further upside. Traders expect no action from the Federal Reserve at next week’s policy meeting, according to federal funds futures trading data collected by CME Group’s FedWatch tool. Disclosure: All opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, its parent or affiliates, and may have been previously disseminated on television, radio, the Internet, or another medium. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The Content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Investments involve risk. The analysis examples included in this article are examples only. The views and opinions expressed are those of the contributors and do not necessarily reflect the official policy or position of Ritholtz Wealth Management, LLC. Josh Brown is the Chief Executive Officer of Riholtz Wealth Management and may maintain securities positions in the securities discussed. The assumptions made within the analysis do not reflect the position of RITHOLTZ WEALTH MANAGEMENT, LLC until the end of the disclosure. Click here for full disclaimer.
