Trade-Ideas: Zillow (Z) Is Today's Post-Market Leader Stock

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 $107.4 million.
  • Z is up 4% today from today's close.

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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 7 analysts that rate Zillow a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Zillow has been 1.1 million shares per day over the past 30 days. Zillow has a market cap of $2.8 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.24 and a short float of 52.7% with 6.16 days to cover. Shares are up 7.1% year-to-date as of the close of trading on Tuesday.

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 sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 150.9% when compared to the same quarter one year ago, falling from $2.33 million to -$1.19 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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 $3.99 million or 26.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • ZILLOW INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ZILLOW INC increased its bottom line by earning $0.19 versus $0.04 in the prior year. For the next year, the market is expecting a contraction of 84.2% in earnings ($0.03 versus $0.19).
  • The gross profit margin for ZILLOW INC is currently very high, coming in at 91.88%. 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 -2.23% is in-line with the industry average.

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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