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 0.3%. By the end of trading, Zillow rose $0.95 (1.6%) to $59.41 on average volume. Throughout the day, 619,580 shares of Zillow exchanged hands as compared to its average daily volume of 719,400 shares. The stock ranged in a price between $58.95-$59.94 after having opened the day at $59.80 as compared to the previous trading day's close of $58.46. Other companies within the Diversified Services industry that increased today were: SoundBite Communications ( SDBT), up 65.9%, YY ( YY), up 17.2%, China Distance Education Holdings ( DL), up 14.5% and National Technical Systems ( NTSC), up 7.2%.
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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 $1.6 billion and is part of the services sector. The company has a P/E ratio of 5837.0, above the S&P 500 P/E ratio of 17.7. Shares are up 110.3% year to date as of the close of trading on Monday. Currently there are 3 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the negative front, Fortune Industries ( FFI), down 10.9%, China HGS Real Estate ( HGSH), down 7.9%, Document Security Systems ( DSS), down 6.9% and USA Technologies ( USAT), down 6.1%.

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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