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Jun 08, 2020
Zillow (Z, $61.22) rating boosted to buy from hold

Zillow (Z, $61.22) rating boosted to buy from hold

On Monday, Zillow  shares were upgraded by a Needham analyst, on what the latter perceives as growing willingness among consumers for online realtors’ services.

Needham analyst Brad Erickson lifted rating on shares of the online real-estate platform/ brokerage to buy from hold.

Erickson thinks that prospective home buyers will have a greater comfort level with online interactions with realtors as the covid-19 pandemic compels them to move much of their lives online through (work from home) and shelter-in-place. He also mentioned that smaller realtors face increasing challenges due to headwinds to lead generation and low inventory – a situation that will propel real estate agent consolidation towards larger agencies and thus enable those agencies to spend more on advertising to grab market share.

Erickson did mention downside risks of low inventory leading to transaction softness and macro risk; but said,  "we view these risks as low probability if at all given the current macro technology".

Technical Analysis (Indicators)

Bullish Trend Analysis

The Aroon Indicator entered an Uptrend today. In 224 of 288 similar cases where Z Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 21 of 36 cases where Z's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 58%.

The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 30 of 56 cases where Z's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 54%.

Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where Z declined for three days, in 194 of 272 cases, the price rose further within the following month. The odds of a continued Downtrend are 71%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 24 of 40 cases where Z's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 60%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 71%. During the last month, the daily ratio of advancing to declining volumes was 2.31 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.

The Tickeron Valuation Rating of 33 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.70) is normal, around the industry mean (8.00). P/E Ratio (0.00) is within average values for comparable stocks, (59.07). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (6.95). Dividend Yield (0.00) settles around the average of (0.33) among similar stocks. P/S Ratio (2.22) is also within normal values, averaging (3.53).

The Tickeron Price Growth Rating for this company is 37 (best 1 - 100 worst), indicating steady price growth. Z’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

Related Ticker: Z

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


Z's Stochastic Oscillator dives into oversold zone

The Stochastic Oscillator for Z moved into oversold territory on September 08, 2026. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The 10-day moving average for Z crossed bullishly above the 50-day moving average on August 05, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where Z advanced for three days, in of 303 cases, the price rose further within the following month. The odds of a continued upward trend are .

Z may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In of 194 cases where Z Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on Z as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for Z turned negative on August 31, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .

Z moved below its 50-day moving average on September 08, 2026 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where Z declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. Z’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.690) is normal, around the industry mean (5.858). Z's P/E Ratio (140.749) is considerably higher than the industry average of (27.667). Projected Growth (PEG Ratio) (0.932) is also within normal values, averaging (27.642). Dividend Yield (0.000) settles around the average of (0.048) among similar stocks. P/S Ratio (2.812) is also within normal values, averaging (70.334).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. Z’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.

Notable companies

The most notable companies in this group are Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Spotify Technology SA (NYSE:SPOT), Nebius Group N.V. (NASDAQ:NBIS), Baidu (NASDAQ:BIDU), Tencent Music Entertainment Group (NYSE:TME), Pinterest (NYSE:PINS), Snap (NYSE:SNAP), Zillow Group (NASDAQ:Z).

Industry description

Companies in this industry typically license software on a subscription basis and it is centrally hosted. Such products usually go by the names web-based software, on-demand software and hosted software. Cloud computing has emerged as a major force in this space, making it possible to save files to a remote database (without requiring them to be saved on local storage device); as long as a device has access to the web, it can access the data and the software programs to run it. This has in many cases facilitated cost efficiency, speed and security of data for businesses and consumers. Alphabet Inc., Facebook, Inc. and Yahoo! Inc. are some well-known names in the internet software/services industry.

Market Cap

The average market capitalization across the Internet Software/Services Industry is 141.11B. The market cap for tickers in the group ranges from 2.69K to 4.12T. GOOGL holds the highest valuation in this group at 4.12T. The lowest valued company is STBXF at 2.69K.

High and low price notable news

The average weekly price growth across all stocks in the Internet Software/Services Industry was -3%. For the same Industry, the average monthly price growth was -8%, and the average quarterly price growth was -4%. SLE experienced the highest price growth at 25%, while NAMI experienced the biggest fall at -17%.

Volume

The average weekly volume growth across all stocks in the Internet Software/Services Industry was 2%. For the same stocks of the Industry, the average monthly volume growth was -13% and the average quarterly volume growth was -44%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 45
P/E Growth Rating: 73
Price Growth Rating: 62
SMR Rating: 77
Profit Risk Rating: 94
Seasonality Score: -13 (-100 ... +100)
Related Portfolios: REAL ESTATE
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a real estate app

Industry InternetSoftwareServices

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Industry
Information Technology Services
Address
1301 Second Avenue
Phone
+1 206 470-7000
Employees
7068
Web
https://www.zillowgroup.com
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