Zillow Inc (Z): Diversified Services' Spotlighted Daily Leader

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 down 1.7%. By the end of trading, Zillow rose 69 cents (1.3%) to $55.02 on light volume. Throughout the day, 327,401 shares of Zillow exchanged hands as compared to its average daily volume of 694,800 shares. The stock ranged in a price between $53.14-$55.23 after having opened the day at $53.66 as compared to the previous trading day's close of $54.33. Other companies within the Diversified Services industry that increased today were: Infoblox ( BLOX), up 5.3%, WNS holdings ( WNS), up 5.2%, China HGS Real Estate ( HGSH), up 4%, and Lime Energy ( LIME), up 3.8%.
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Zillow, Inc. engages in the operation of a real estate and home-related information marketplace on mobile and the Web in the United States. Zillow has a market cap of $1.37 billion and is part of the services sector. The company has a P/E ratio of 287.2, above the S&P 500 P/E ratio of 17.7. Shares are up 86.3% year to date as of the close of trading on Tuesday. Currently there are two analysts that rate Zillow a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Zillow as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and premium valuation.

On the negative front, InnerWorkings ( INWK), down 25.3%, Ambassadors Group ( EPAX), down 15.2%, Hudson Global ( HSON), down 9.4%, and ENGlobal Corporation ( ENG), down 7.3%, were all laggards within the diversified services industry with Visa ( V) 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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