Rocket Mortgage platform

Search documents
3 Fintech Stocks That Are Set to Rise as Rates Fall
MarketBeatยท 2025-10-06 17:01
Group 1: Upstart Holdings Inc. - Upstart operates an AI-driven lending platform that enhances credit risk assessment compared to traditional FICO models, with its success closely tied to loan approvals and interest rate conditions [2][4] - The company reported a 33% earnings-per-share (EPS) beat in Q2 2025, with EPS at 36 cents against a consensus of 27 cents, indicating a disconnect between its strong performance and current stock price [4][5] - Analysts maintain a consensus price target of $81.08 for Upstart, suggesting a potential upside of 56% from current prices [5] Group 2: Affirm Holdings Inc. - Affirm operates on a floating-rate basis, allowing it to benefit more quickly from interest rate cuts compared to Upstart, with a current price forecast of $82.04, indicating an 8.4% upside [6][7] - The company specializes in Buy Now Pay Later (BNPL) financing, with over 25% of users utilizing the service for essential purchases, reflecting tight consumer budgets [8] - Despite trading at 74% of its 52-week high, Affirm has a price target of $108 assigned by Mizuho, which is significantly above the analyst consensus [9] Group 3: Rocket Companies Inc. - Rocket Companies is positioned to benefit from a potential surge in refinancing demand as mortgage rates decline, with a current price forecast of $16.88, indicating a downside of 5.04% [10] - The company has seen a 39.4% rally over the past quarter, outperforming the S&P 500 and most mortgage peers, as markets anticipate increased refinancing activity [11] - Bank of America set a price target of $24 for Rocket Companies, suggesting an 18% upside potential above the consensus price target of $16.65 [12]