On October 2, Rocket Companies rose 5.23% in pre-market trading, trading at $12.60/share, with turnover of approximately $4.50 million. The move was driven by the announcement that its subsidiary Rocket Mortgage has adopted VantageScore 4.0 as the preferred credit scoring model for all eligible direct-to-consumer loan products.

VantageScore 4.0 offers broader coverage than traditional scoring models, potentially bringing in borrowers previously excluded due to insufficient credit history, thereby expanding the company's customer acquisition pipeline. The initiative aligns with Rocket's broader strategy to integrate technology-enabled services across its ecosystem, following a recent homebuyer incentive program launched in partnership with Redfin offering savings of up to $20,000.

It is worth noting that Rocket reported Q2 adjusted EPS of $0.16, slightly missing the $0.17 consensus estimate, while revenue of $2.78 billion also fell short of the $2.81 billion projection. Oppenheimer flagged near-term revenue pressure from elevated interest rates weighing on purchase and refinance activity, but highlighted positive progress on cost synergies, with approximately $400 million in annualized savings expected by year-end. Analyst consensus currently rates Rocket Companies as overweight with a mean price target of $17.77.

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