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.
