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. For comparison, the S&P 500’s PE is currently at about 28.7, nearly double its long-term average of 15.9. Rocket’s PE is 9.0, less than a third of the S&P 500 average as a whole. Growth Looking ahead to the next four quarters, the S&P 500’s forward PE ratio looks much more reasonable at just 20.8. Rocket’s forward earnings multiple of 10.0 is still less than half the S&P 500’s, making Rocket look undervalued. Rocket’s forward PE ratio …
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