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 $25.8 million.
  • ZG has traded 667,748 shares today.
  • ZG is down 3.5% today.
  • ZG was up 5.2% yesterday.

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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 28.5% with 8.83 days to cover. Shares are down 21.2% year-to-date as of the close of trading on Thursday.

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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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow 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 83.4%. 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 6.84, which clearly demonstrates the ability to cover short-term cash needs.
  • ZILLOW GROUP INC has improved earnings per share by 48.1% 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 -$2.14 versus -$1.09 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus -$2.14).
  • Net operating cash flow has significantly decreased to -$15.93 million or 230.97% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 136.0% when compared to the same quarter one year ago, falling from -$10.90 million to -$25.72 million.

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