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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Zillow ( Z) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Zillow fell $2.05 (-2.7%) to $74.61 on light volume. Throughout the day, 432,499 shares of Zillow exchanged hands as compared to its average daily volume of 724,800 shares. The stock ranged in price between $74.28-$77.09 after having opened the day at $76.38 as compared to the previous trading day's close of $76.66. Other companies within the Services sector that declined today were: Expedia ( EXPE), down 27.4%, General Employment ( JOB), down 15.4%, Digital Domain Media Group ( DDMGQ), down 13.7% and Digital Domain Media Group ( DDMG), down 13.7%.

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 $2.0 billion and is part of the internet industry. Shares are up 176.3% year to date as of the close of trading on Thursday. 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and premium valuation.

On the positive front, SPS Commerce ( SPSC), up 16.0%, Constant Contact ( CTCT), up 9.7%, Tiger Media ( IDI), up 8.7% and Compx International ( CIX), up 8.1% , were all gainers within the services sector with Cardinal Health ( CAH) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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