Rocket Companies has been down in the dumps, but its shares could be due for a bounce following its latest string of acquisitions, according to Josh Brown. The fintech and homeownership services company is down roughly 20% since the beginning of the year, despite a broader real estate rally. But that doesn’t mean there’s more downside ahead, Ritholtz Wealth Management CEO and co-founder Josh Brown said Tuesday on CNBC’s “Halftime Report.” “This is a company that spent the mortgage nuclear winter making acquisitions,” Brown said. “And now, with this combination of assets, I think the CEO is on the right track, and what he wants to build is the dominant mortgage-to-housing platform.” Last October, Rocket completed the acquisition of Mr. Cooper , a large mortgage servicer, for more than $14 billion. Following the deal, Rocket services nearly 10 million homeowners. That adds to its purchase of real-estate brokerage platform Redfin , completed a few months earlier. Rocket seems to be poised for a bounce as the real estate industry rallies. The State Street Real Estate Select Sector SPDR ETF risen 7% in the year to date. Stocks in the sector, including Rocket, could also see more upside if the Federal Reserve cuts interest rates again, or Treasury yields pull back to where they were before the Iran war. Traders expect no move from the Federal Reserve at its policy meeting next week, according to fed funds futures trading data collected on the CME Group’s FedWatch tool.
