Zillow just joined an exclusive group of stocks positioned for takeoff. Based on continued strong profit and sales, the highly ranked real estate firm's stock got a Relative Strength (RS) Rating bump up from 78 to 84.
The upgraded 84 rating means Zillow is in the top 16% of all stocks for price performance this past year. Market research shows that the market's biggest winners typically have an RS Rating over 80 as they launch their biggest climbs. Welcome to the club, Zillow.
Zillow Tracing A Cup Pattern
Seattle-based Zillow is working on the right side of a cup base, or possibly a cup with handle. It dropped to the bottom of the cup at 57.91 on April 9 and began climbing the right wall. Thursday afternoon it traded at 78.33, up more than 3% for the day. The buy point of the base is 89.39.
Last quarter, Zillow reported a 14% increase in earnings to 41 cents per share on a 13% rise in revenue to $598 million. The company is expected to report its next round of numbers on or around July 31.
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Zillow provides online real estate data and connects home buyers with sellers and mortgage specialists. The company says on its website that it's the No. 1 residential real estate app, with 160 million homes in its database.
Among its other key ratings Zillow has a strong 85 Composite Rating, putting it in the top 15% of stocks, regardless of industry, for a group of the most important fundamental and technical metrics. Additionally, Zillow has an 84 EPS Rating. And its B- Accumulation/Distribution Rating shows that mutual funds, ETFs and the like are buying more of its shares than selling.
No. 3 In Peer Group Of 56 Stocks
Zillow earns the No. 3 rank among its peers in the 56-stock Real Estate-Development/Operations industry group. Mexico-based Grupo Aeroportuario is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating identifies share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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