Group 1 - Market participants are anticipating interest rate cuts, with expectations rising from zero cuts to 2-3 cuts for 2025, including a potential 50 basis-point cut [1] - Mortgage lenders like Rocket Companies (RKT) have seen a +7.4% increase, while homebuilders Pulte Home (PHM) and Lennar (LEN) are up +5%, indicating strong interest in the new interest rate environment [2] - The Russell 2000 index has increased by +4.3% over the past two sessions, benefiting small banks and insurance companies from lower interest rates [2] Group 2 - Cisco Systems (CSCO) reported fiscal Q4 earnings of 99 cents per share, exceeding the Zacks consensus by 2 cents and showing a +7.6% year-over-year revenue increase to $14.67 billion [3][4] - Cisco's guidance for the current quarter is slightly raised, with the high-end of the Q1 earnings range remaining flat at 99 cents per share, and shares are up +18.7% year to date [4] Group 3 - Upcoming economic indicators include Weekly Jobless Claims expected to remain below 230K and Continuing Claims anticipated to stay under 2 million [5] - The Producer Price Index (PPI) is projected to rise to +0.2% on the headline and +0.3% on the core, which are manageable increases for the market [6]

Core Insights - Viral Nation has been appointed as the Social Media Agency of Record for Rocket, a Detroit-based fintech platform that encompasses mortgage, real estate, title, and personal finance businesses [1] - The partnership aims to provide authentic homeownership stories that resonate with social media users, moving beyond curated content to offer real support and guidance [2][4] Company Overview - Rocket Companies, founded in 1985, operates various financial services including Rocket Mortgage, Redfin, Rocket Homes, Rocket Close, Rocket Money, and Rocket Loans [6] - The company is recognized for its exceptional client experiences, having been ranked 1 in client satisfaction for primary mortgage origination and servicing by J.D. Power a total of 22 times [7] Strategic Initiatives - The "Own the Dream" campaign launched by Rocket was amplified by Viral Nation's strategic social campaigns, achieving 247 million views nationwide and fostering genuine conversations across platforms [3] - Viral Nation will assist Rocket in showcasing real client stories and managing dynamic community engagement to guide potential homeowners through the homebuying journey [4][5] Industry Context - Nearly 80% of social media users seek inspiration for homeownership through their feeds, indicating a significant opportunity for brands to connect with audiences on a deeper level [2] - The collaboration between Rocket and Viral Nation aims to build a social movement that empowers Americans to envision themselves in the homeownership journey [5]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) H1 2025 saw a net loss of $178.4 million, driven by MSR fair value changes, while total assets grew to $30.4 billion following a $4.0 billion senior note issuance and the Up-C Collapse [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$30.4 billion** by June 30, 2025, driven by higher cash and senior notes, while total equity decreased to **$7.4 billion** due to the Up-C Collapse Condensed Consolidated Balance Sheet Highlights (as of June 30, 2025 vs. Dec 31, 2024) | Metric | June 30, 2025 ($ in thousands) | December 31, 2024 ($ in thousands) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $5,090,631 | $1,272,853 | +$3,817,778 | | Mortgage loans held for sale | $11,168,691 | $9,020,176 | +$2,148,515 | | Mortgage servicing rights (MSRs) | $7,566,632 | $7,633,371 | -$66,739 | | **Total Assets** | **$30,360,222** | **$24,510,063** | **+$5,850,159** | | **Liabilities** | | | | | Funding facilities | $9,481,780 | $6,708,186 | +$2,773,594 | | Senior Notes, net | $8,000,225 | $4,038,926 | +$3,961,299 | | **Total Liabilities** | **$22,911,294** | **$15,466,683** | **+$7,444,611** | | **Equity** | | | | | Non-controlling interest | $— | $8,340,879 | -$8,340,879 | | **Total Equity** | **$7,448,928** | **$9,043,380** | **-$1,594,452** | [Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)%20and%20Comprehensive%20Income%20(Loss)) Q2 2025 net income decreased to **$34.1 million**, and H1 2025 resulted in a **$178.4 million** net loss, primarily due to MSR fair value changes and increased expenses Income Statement Summary (Q2 & H1 2025 vs. 2024) | Metric ($ in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenue, net | $1,360,251 | $1,300,722 | $2,397,515 | $2,684,438 | | Total expenses | $1,335,989 | $1,108,680 | $2,596,356 | $2,194,026 | | **Net income (loss)** | **$34,089** | **$177,925** | **($178,357)** | **$468,639** | | Net (loss) income attributable to Rocket | ($1,785) | $1,295 | ($12,168) | $17,510 | | **Diluted EPS** | **($0.01)** | **$0.01** | **($0.08)** | **$0.13** | [Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased to **$7.4 billion** by June 30, 2025, primarily due to the Up-C Collapse eliminating non-controlling interest, alongside a net loss and special dividend payments - The Up-C Collapse on June 30, 2025, resulted in the elimination of the non-controlling interest and the exchange of Class D common stock for newly created Class L common stock[17](index=17&type=chunk)[25](index=25&type=chunk) - A special dividend of **$122.2 million** was paid to Class A shareholders in the first half of 2025[17](index=17&type=chunk)[38](index=38&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by **$3.8 billion** in H1 2025, driven by **$6.5 billion** from financing activities, partially offset by **$2.6 billion** used in operations Cash Flow Summary (Six Months Ended June 30) | Metric ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,647,130) | ($3,135,051) | | Net cash used in investing activities | ($54,575) | ($226,025) | | Net cash provided by financing activities | $6,524,908 | $3,560,983 | | **Net increase in cash** | **$3,824,001** | **$200,426** | - Financing activities were significantly boosted by **$4.0 billion** in borrowings from new Senior Notes during the first half of 2025[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Up-C Collapse, recent acquisitions of Redfin and pending Mr. Cooper deal, **$4.0 billion** senior note issuance, and the company's two reportable segments - On June 30, 2025, the company completed a series of transactions to collapse its Up-C structure, simplifying its organization by eliminating non-controlling interests and creating a new Class L common stock[25](index=25&type=chunk) - The company completed the acquisition of Redfin Corporation on July 1, 2025, and has a pending agreement to purchase Mr. Cooper Group Inc., expected to close in Q4 2025[57](index=57&type=chunk)[58](index=58&type=chunk) - In June 2025, the company issued **$2.0 billion** of 6.125% senior notes due 2030 and **$2.0 billion** of 6.375% senior notes due 2033[106](index=106&type=chunk)[112](index=112&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses challenging market conditions, an 18% increase in Q2 2025 mortgage origination volume to **$29.1 billion**, but a decline in net income to **$34.1 million** due to lower margins and higher expenses, while maintaining **$9.1 billion** in liquidity [Executive Summary and Recent Developments](index=54&type=section&id=Executive%20Summary%20and%20Recent%20Developments) Q2 2025 faced high inflation and mortgage rates, with strategic moves including the Up-C Collapse and acquisitions, resulting in an 18% increase in origination volume but a drop in net income to **$34.1 million** - Market conditions in Q2 2025 were characterized by inflation remaining above the Federal Reserve's target and elevated 30-year fixed mortgage rates, which continued to challenge housing affordability and mortgage activity[208](index=208&type=chunk) Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Mortgage Origination Volume | $29.1 billion | $24.7 billion | +18% | | Net Income | $34.1 million | $177.9 million | -81% | | Adjusted EBITDA | $171.8 million | $224.8 million | -24% | [Key Performance Indicators](index=60&type=section&id=Key%20Performance%20Indicators) Q2 2025 saw an 18% increase in closed loan origination volume to **$29.1 billion**, but gain on sale margin compressed to **2.80%**, while total serviced UPB grew to **$609.2 billion** and Rocket Money subscribers reached **4.46 million** Key Performance Indicators (Q2 2025 vs. Q2 2024) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Closed loan origination volume | $29.1B | $24.7B | | Gain on sale margin | 2.80% | 2.99% | | Total serviced UPB (at period end) | $609.2B | $534.6B | | Rocket Money paying subscribers | 4.46M | 3.67M | [Results of Operations](index=66&type=section&id=Results%20of%20Operations) Q2 2025 net revenue slightly increased to **$1.36 billion**, but total expenses rose 21% to **$1.34 billion** due to higher compensation, marketing, and acquisition costs, impacting pre-tax income - Gain on sale of loans, net increased by 8% in Q2 2025 to **$815.9 million**, driven by a 13% increase in net rate lock volume[249](index=249&type=chunk) - Loan servicing income, net decreased by 16% in Q2 2025 to **$202.4 million**, primarily due to a negative change in MSR valuation model inputs caused by a decrease in interest rates during the quarter[257](index=257&type=chunk) - Total expenses for Q2 2025 increased by 21% to **$1.3 billion**, driven by higher variable compensation, a 31% increase in marketing expenses, and acquisition-related costs[268](index=268&type=chunk) [Summary results by segment](index=75&type=section&id=Summary%20results%20by%20segment) Q2 2025 Direct to Consumer contribution margin decreased 2% to **$367.5 million**, while Partner Network saw a 34% decline to **$83.4 million** due to compressed gain on sale margins Segment Contribution Margin (Q2 2025 vs. Q2 2024) | Segment | Q2 2025 Contribution Margin | Q2 2024 Contribution Margin | YoY Change | | :--- | :--- | :--- | :--- | | Direct to Consumer | $367.5 million | $374.7 million | -2% | | Partner Network | $83.4 million | $126.3 million | -34% | - The Direct to Consumer segment's expenses grew 20% YoY, driven by brand marketing and higher variable costs, which offset an 11% increase in adjusted revenue[275](index=275&type=chunk)[276](index=276&type=chunk) - The Partner Network's adjusted revenue fell 21% YoY, driven by a 25% decrease in gain on sale of loans, net, due to compressed margins[283](index=283&type=chunk) [Liquidity and Capital Resources](index=79&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position of **$9.1 billion** as of June 30, 2025, bolstered by a **$4.0 billion** senior note offering to support strategic acquisitions - Total liquidity stood at **$9.1 billion** as of June 30, 2025, including **$5.1 billion** of cash and cash equivalents[297](index=297&type=chunk) - In June 2025, the company issued **$4.0 billion** in aggregate principal of new senior notes, with proceeds intended to fund the redemption of Mr. Cooper's senior notes upon acquisition completion and for general corporate purposes[299](index=299&type=chunk) - A special cash dividend of **$0.80** per share was paid to Class A common stockholders on April 3, 2025[303](index=303&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes to the company's market risk exposure have occurred since the disclosures in its 2024 Annual Report on Form 10-K - There have been no material changes to the Company's market risk exposure since the end of fiscal year 2024[306](index=306&type=chunk) [Item 4. Controls and Procedures](index=83&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[307](index=307&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[308](index=308&type=chunk) [PART II. OTHER INFORMATION](index=84&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=84&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions but does not anticipate a material adverse effect on its financial condition or operations - Management does not expect pending or threatened legal matters to have a material adverse effect on the company's business, financial condition, or results of operations[310](index=310&type=chunk) [Item 1A. Risk Factors](index=84&type=section&id=Item%201A.%20Risk%20Factors) The company's risk factors have not significantly changed from those disclosed in its 2024 Form 10-K and Q1 2025 Form 10-Q - There have been no significant changes to the company's risk factors from those previously disclosed in the 2024 Form 10-K and Q1 2025 Form 10-Q[311](index=311&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=84&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On June 30, 2025, the company issued approximately **1.85 billion** shares of Class L common stock as part of the Up-C Collapse, exempt from public registration - The company issued approximately **1.85 billion** shares of Class L common stock on June 30, 2025, as part of the Up-C Collapse transaction[312](index=312&type=chunk) - The issuance was exempt from registration under Section 4(a)(2) of the Securities Act of 1933 as a private offering[313](index=313&type=chunk) [Item 5. Other Information](index=84&type=section&id=Item%205.%20Other%20Information) No additional information was reported under this item - None[314](index=314&type=chunk) [Item 6. Exhibits](index=85&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate charters, debt indentures, and executive certifications - The report includes numerous exhibits, such as the Second Amended and Restated Certificate of Incorporation, the Indenture for the new senior notes, and amendments related to the Up-C Collapse and Tax Receivable Agreement[315](index=315&type=chunk)

Core Viewpoint - Rocket Companies, Inc. is initiating an exchange offer for existing senior notes in connection with its acquisition of Mr. Cooper Group Inc., aiming to exchange up to $1.75 billion in new senior notes for existing notes totaling $1.75 billion [1][5][13] Exchange Offer Details - The company is offering to exchange $750 million of 6.500% Senior Notes due 2029 and $1 billion of 7.125% Senior Notes due 2032 for new senior notes [1][5] - Eligible holders can receive a cash payment of $2.50 per $1,000 principal amount of existing notes for valid consents delivered by the Early Tender Date [8][9] - The total exchange consideration includes $950 or $1,000 principal amount of new Rocket Notes depending on the timing of consent receipt [9][12] Consent Solicitation - Rocket Companies is soliciting consents for proposed amendments to the indentures governing the existing notes, which include eliminating certain covenants and events of default [5][6] - A majority of the aggregate principal amount of existing notes must consent for the proposed amendments to be adopted [6][13] Timeline and Conditions - The exchange offers and consent solicitations will expire on September 2, 2025, with an early tender date of August 15, 2025 [7][10] - The consummation of the exchange offers is contingent upon receiving the necessary consents and the completion of the acquisition of Mr. Cooper [13][10] New Rocket Notes - The new Rocket Notes will have the same interest rate and maturity date as the existing notes, and will be guaranteed by Rocket Mortgage and its subsidiaries [11][12]

Core Viewpoint - Rocket Companies, Inc. is initiating tender offers to acquire outstanding senior notes from Nationstar Mortgage Holdings Inc. as part of its acquisition of Mr. Cooper Group Inc. [1][2] Tender Offers - The company is offering to purchase 5.125% Senior Notes due 2030 and 5.750% Senior Notes due 2031, with aggregate principal amounts of US$650 million and US$600 million respectively [3][4] - The tender offer consideration for both notes is set at $962.50 per $1,000 principal amount, with an early tender payment of $50, bringing the total tender offer consideration to $1,012.50 for early tenders [3][4] Consent Solicitations - The company is soliciting consents to amend the indentures governing the notes, which includes eliminating the "Change of Control" offer requirement and most restrictive covenants [2][9] - A majority of the aggregate principal amount of the notes must provide consent for the proposed amendments to be adopted [9] Timeline and Conditions - The tender offers and consent solicitations will expire on September 2, 2025, with an early tender deadline of August 15, 2025 [7][11] - The consummation of the tender offers is contingent upon receiving the requisite consents and the successful completion of the acquisition of Mr. Cooper [10]

Group 1: Market Performance - Dongyue Group (00189) saw a rise of over 1%, with expectations for increased refrigerant demand as the new cooling season begins, despite a seasonal decline in August [1] - Hong Kong's banking stocks experienced a rally, with Agricultural Bank (01288) up over 2%, and other banks like ICBC (01398) and China Merchants Bank (03968) also gaining over 1%. The overall asset quality of listed banks remains stable, and profit growth is expected to continue [1] - In the gold sector, Lingbao Gold (03330) rose over 3%, with other companies like Chifeng Jilong Gold (06693) and Shandong Gold (01787) also seeing significant gains, driven by lower-than-expected U.S. job growth data which increased interest in gold [3] Group 2: Company Announcements - InnoCare (02577) surged over 8% after being named the only Chinese chip company in NVIDIA's 800VDC power architecture collaboration, indicating a significant partnership in AI data centers [2] - Derun Shipping (02510) announced a profit forecast of approximately $180 million to $200 million for the six months ending June 30, 2025, representing a 220% to 255% increase compared to the previous year [2] - China Eastern Education (00667) reported an expected profit increase of no less than 45% for the first half of the year, driven by a 7% increase in new student registrations and effective cost control [3] Group 3: Financial Results - Amazon (AMZN.US) reported second-quarter earnings that exceeded expectations, with AWS revenue growing 17% year-over-year, but the third-quarter profit guidance fell short of market expectations [5] - Coinbase (COIN.US) saw a 16.7% drop after reporting second-quarter revenue of $1.5 billion, which was below analyst expectations, despite a significant profit increase due to investments [5] - Moderna (MRNA.US) experienced a decline of over 10% due to delays in vaccine shipments, leading to a downward revision of its revenue forecast for 2025 [7]

Core Insights - Rocket Companies reported higher-than-expected adjusted revenue and non-GAAP earnings per share for Q2 2025, completing its acquisition of Redfin [1][5] - Adjusted revenue reached $1.34 billion, exceeding analyst expectations of $1.27 billion, while adjusted diluted EPS was $0.04, above the $0.03 estimate [1][2] - Profitability metrics such as GAAP net income and adjusted EBITDA declined compared to Q2 2024, indicating mixed profitability trends despite top-line growth [1][6] Financial Performance - Adjusted diluted EPS decreased from $0.06 in Q2 2024 to $0.04 in Q2 2025, a decline of 33.3% [2] - Adjusted EBITDA fell to $172 million from $225 million year-over-year, a decrease of 23.6% [2] - GAAP net income dropped significantly from $178 million in Q2 2024 to $34 million in Q2 2025, an 80.9% decline [2] Business Overview - Rocket Companies operates as a technology-driven financial services platform, primarily focused on mortgage origination and servicing [3] - The company is recognized for its digital mortgage lending business, Rocket Mortgage, and has invested heavily in technology to enhance its offerings [3][4] Strategic Developments - The acquisition of Redfin enhances Rocket's platform, providing access to approximately 50 million monthly active users and over one million listings [7][8] - The company simplified its capital structure by reducing share classes from four to two, aiming for greater flexibility in future acquisitions [10] - Rocket plans to shut down Rocket Mortgage Canada and discontinue its co-branded Visa credit card to focus on core U.S. mortgage and real estate businesses [10] Market Dynamics - Closed loan origination volume increased from $24.66 billion in Q2 2024 to $29.06 billion in Q2 2025, reflecting an 18% year-over-year growth [9] - The Direct to Consumer channel saw an 8.3% increase in sold loan volume, while the Partner Network experienced a contraction in gain-on-sale margins due to increased competition [9] Future Outlook - Management projects adjusted revenue for Q3 2025 to be between $1.60 billion and $1.75 billion, reflecting a full quarter of consolidated Redfin results [13] - Key themes for upcoming quarters include successful integration of Redfin, origination growth, and cost control amid macro risks in the housing market [14]

Core Viewpoint - Rocket's stock price increased over 14% following the release of its Q2 2025 financial results, indicating strong performance in a challenging market environment [1] Financial Performance - The company reported earnings per share (EPS) of $0.04, exceeding analyst expectations of $0.03 by 33.33% [1] - Quarterly revenue reached $136 million, surpassing market expectations of $128 million, showcasing robust financial health [1] - Adjusted revenue grew by 9% year-over-year, totaling $134 million, driven by an increase in net locked-in rates and stable sales profit margins [1] Strategic Initiatives - Despite challenges in the real estate market, the company maintained its competitive position through effective use of artificial intelligence technology and flexible strategic deployment [1] - Rocket closed underperforming business segments and launched several AI-driven innovative services, significantly enhancing operational efficiency and customer experience [1] - The company provided positive forward guidance, anticipating continued revenue growth and plans for strategic acquisitions to expand its business boundaries and increase market share [1]

Core Viewpoint - Rocket's stock price increased over 14% following the release of its Q2 2025 financial results, indicating strong performance in a challenging market environment [1] Financial Performance - The company reported earnings per share (EPS) of $0.04, exceeding analyst expectations of $0.03 by 33.33% [1] - Quarterly revenue reached $136 million, surpassing market expectations of $128 million [1] - Adjusted revenue grew by 9% year-over-year, totaling $134 million, driven by an increase in net locked-in rates and stable sales profit margins [1] Strategic Initiatives - Rocket has closed some underperforming business segments and launched several AI-driven innovative services, significantly enhancing operational efficiency and customer experience [1] - The company provided positive forward guidance, anticipating continued revenue growth and plans for strategic acquisitions to expand its business boundaries and increase market share [1]

Core Insights - Rocket Companies reported revenue of $1.34 billion for the quarter ended June 2025, reflecting a 3% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.25 billion by 6.85% [1] - The company's EPS was $0.04, down from $0.06 in the same quarter last year, but exceeded the consensus estimate of $0.03 by 33.33% [1] Revenue Breakdown - Gain on sale of loans excluding fair value of MSRs was $472.38 million, exceeding the average estimate of $437.81 million by analysts, representing a 14.4% increase year-over-year [4] - Fair value of originated MSRs was reported at $343.53 million, slightly below the estimated $421.95 million, showing a minor decline of 0.6% compared to the previous year [4] - Servicing fee income from loan servicing was $401.28 million, which was lower than the estimated $410.87 million but still showed a 13.1% increase year-over-year [4] - Change in fair value of MSRs reported at -$198.89 million, better than the estimated -$279 million, indicating a significant year-over-year improvement of 76.1% [4] - Other income was $309.34 million, surpassing the estimate of $298.67 million, marking a 14.9% increase from the previous year [4] - Net gain on sale of loans was $815.9 million, below the estimated $860.09 million, but still reflecting a 7.6% increase year-over-year [4] - Net loan servicing income was $202.39 million, significantly higher than the estimated $131.88 million, although it represented a decline of 16.3% year-over-year [4] - Net interest income was $32.62 million, exceeding the estimate of $25.06 million, with a year-over-year increase of 4.8% [4] - Interest income was reported at $123.5 million, surpassing the estimated $91.94 million, reflecting a 9.9% increase compared to the same quarter last year [4] Stock Performance - Over the past month, shares of Rocket Companies have returned +0.6%, underperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]