Zillow Inc (Z): Today's Featured Services Laggard

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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 1.4%. By the end of trading, Zillow fell $1.77 (-2.9%) to $60.17 on heavy volume. Throughout the day, 1,147,138 shares of Zillow exchanged hands as compared to its average daily volume of 705,900 shares. The stock ranged in price between $59.86-$63.24 after having opened the day at $62.49 as compared to the previous trading day's close of $61.94. Other companies within the Services sector that declined today were: DXP ( DXPE), down 15.2%, ENGlobal Corporation ( ENG), down 13.1%, Newport Corporation ( NEWP), down 9.2% and EnviroStar ( EVI), down 9.0%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $1.6 billion and is part of the diversified services industry. The company has a P/E ratio of 326.8, above the S&P 500 P/E ratio of 17.7. Shares are up 123.2% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Zillow a buy, no analysts rate it a sell, and 3 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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and premium valuation.

On the positive front, dELiA*s ( DLIA), down 35.3%, Build-A-Bear Workshop ( BBW), down 33.3%, Destination XL Group ( DXLG), down 27.2% and Casual Male Retail Group ( CMRG), down 27.2% , were all gainers within the services sector with eBay ( EBAY) being today's featured services sector leader.

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

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you liked this article you might like

Floyd Mayweather Just Joined List of 10 Outrageously Expensive Celebrity Homes

Move Away From Real Estate Stocks

Move Away From Real Estate Stocks

These Stocks Have Changed Direction

Zillow Sites Start Charging Fee for NYC Rental Listings, And One Big Broker Says No Thanks