Rocket Companies, Inc. (RKT)

Rocket Companies originates mortgages online and services the loans it writes.

Mortgage origination is an intensely cyclical business: when rates are low people refinance and volumes soar, when they are high the market shrinks to purchase transactions. The company is built on speed of processing and on technology that keeps cost per application low, which matters most in the lean years.

Servicing the loans works in the opposite direction to origination: when rates are high borrowers do not refinance, the book lives longer and earns more. That is a built-in counterweight. The company expanded by acquiring a large servicer and a housing listings platform. Risks: rates, book quality and integrating the acquisitions.