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. Trade-Ideas LLC identified Zillow ( Z) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Zillow as such a stock due to the following factors:
- Z has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $90.9 million.
- Z is up 4.4% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in Z with the Ticky from Trade-Ideas. See the FREE profile for Z NOW at Trade-Ideas More details on Z: Zillow, Inc. engages in the operation of a real estate and home-related information marketplace on mobile and the Web in the United States. Currently there are 3 analysts that rate Zillow a buy, 1 analyst rates it a sell, and 4 rate it a hold. The average volume for Zillow has been 1.4 million shares per day over the past 30 days. The stock has a beta of 1.43 and a short float of 44.8% with 5.69 days to cover. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant 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 solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Highlights from the ratings report include:
- Z's very impressive revenue growth greatly exceeded the industry average of 9.4%. Since the same quarter one year prior, revenues leaped by 69.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Z has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 8.09, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for ZILLOW INC is currently very high, coming in at 92.26%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -21.80% is in-line with the industry average.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Internet Software & Services industry and the overall market, ZILLOW INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $6.26 million or 40.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Zillow Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.