Momentum Stock Watch: Zillow Group, Inc. (Z)

Company Profile:

Zillow Group, Inc. operates real estate brands on mobile and the web in the United States. It operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The company’s platform offers buying, selling, renting, and financing services for residential real estate. It also provides a suite of marketing software and technology solutions; and advertising services. The company’s portfolio of consumer brands consists of Zillow, Zillow Offers, Zillow Home Loans, Trulia, StreetEasy, HotPads, Naked Apartments, and Out East; and business brands for real estate, rental, and mortgage professionals include Mortech, dotloop, Bridge Interactive and New Home Feed. Zillow Group, Inc. was founded in 2004 and is headquartered in Seattle, Washington.

Recent News:

On June 16, 2021, according to Zillow’s latest Market Report, the inventory crunch shows signs of relenting, as available inventory rose 3.9% over April. Home appreciation breaks new records as typical time on market falls to just 6 days. Rent growth kicks into high gear with the largest monthly increase since 2015.

The company reported consolidated first-quarter revenue of $1.2 billion and revenue for each segment exceeded the high end of the company’s outlook for the first quarter. Consolidated net income was $52 million for the first quarter.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

Z’s strengths can be seen in its strong growth and better efficiency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator. The RSI stands at 52.79 with positive bias. We rate Zillow Group, Inc. (Z) a STRONG BUY.