Trade-Ideas LLC identified Zillow Group ( ZG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Zillow Group as such a stock due to the following factors:

  • ZG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • ZG has traded 152,762 shares today.
  • ZG is down 4.5% today.
  • ZG was up 7.3% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in ZG with the Ticky from Trade-Ideas. See the FREE profile for ZG NOW at Trade-Ideas

More details on ZG:

Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. It offers a portfolio of brands and products to help people find vital information about homes, and connect with local professionals. Currently there are 3 analysts that rate Zillow Group a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Zillow Group has been 728,200 shares per day over the past 30 days. Zillow Group has a market cap of $1.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 1.22 and a short float of 29.4% with 11.18 days to cover. Shares are down 21.2% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Zillow Group 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 deteriorating net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • ZG's very impressive revenue growth greatly exceeded the industry average of 21.7%. Since the same quarter one year prior, revenues leaped by 99.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although ZG's debt-to-equity ratio of 0.09 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 5.33, which clearly demonstrates the ability to cover short-term cash needs.
  • ZILLOW GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ZILLOW GROUP INC reported poor results of -$1.09 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus -$1.09).
  • ZG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 33.75%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 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 63.0% when compared to the same quarter one year ago, falling from -$15.98 million to -$26.05 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.