Zillow Inc (Z): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Zillow ( Z) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day up 0.1%. By the end of trading, Zillow rose 41 cents (1.5%) to $27.93 on light volume. Throughout the day, 760,662 shares of Zillow exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in a price between $27.50-$28.13 after having opened the day at $27.74 as compared to the previous trading day's close of $27.52. Other companies within the Diversified Services industry that increased today were: CIBT Education Group ( MBA), up 29.4%, Cambium Learning Group ( ABCD), up 17.2%, China Distance Education Holdings ( DL), up 15.1%, and ENGlobal Corporation ( ENG), up 8.5%.
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Zillow, Inc. engages in the operation of a real estate information marketplace in the United States. Zillow has a market cap of $680.9 million and is part of the services sector. The company has a P/E ratio of 154.6, above the S&P 500 P/E ratio of 17.7. Shares are up 16.9% year to date as of the close of trading on Friday. Currently there are two analysts that rate Zillow a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Zillow as a sell. The company's weaknesses can be seen in multiple areas, such as its premium valuation and weak operating cash flow.

On the negative front, Innovaro ( INV), down 13%, WidePoint Corporation ( WYY), down 12.2%, SmartPros ( SPRO), down 10%, and Vantiv ( VNTV), down 5.9%, were all laggards within the diversified services industry with Tyco International ( TYC) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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