Back to top

Analyst Blog

On Apr 16, Zacks Investment Research upgraded Zillow Inc. (Z - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The company has witnessed rising earnings estimates since it reported solid fourth-quarter results. The company delivered positive earnings surprises in the last 3 quarters of 2012 with an average beat of 411.1%. The long-term expected earnings growth rate for this stock is 30%.  

Over the last 30 days, 1 out of 3 estimates moved north, pushing the Zacks Consensus Estimate for 2013 by 2 cents.

The year-to-date return for the stock came in at 97.3%, way above NASDAQ’s return of 4.9%.

The company has undertaken a number of initiatives to upgrade its services. In Feb 2013, Zillow opened a new office for Zillow Rentals and HotPads acquired in 2012 in San Francisco. In the same month it launched a dedicated rental app for iPad named Zillow Rentals. Rental shoppers using iPad can use Zillow Rentals to search via GPS by specifying a location on the map.

Again, the company enhanced its free online portal, Agent Hub in Mar 2013. The endeavor aimed to augment Zillow’s efforts to convert contacts to active customers, thereby generating more revenues.

Additionally, in order to acquire more customers, the company introduced a Spanish-language support for the Zillow Rentals Android App in Mar 2013. This is expected to enhance its Spanish customer base by helping the native Spanish speakers search for rental homes with greater convenience.

Further, the company is working towards business expansion. Towards this end, Zillow partnered with Engel and Volkers, a premium residential real estate company and HUNT Real Estate ERA, the largest family-owned real estate business in New York state and Phoenix, in Feb 2013. Zillow will now market the listings of the companies through the Zillow Real Estate Network.

Other Stocks to Consider

Among others in the industry, Shutterfly Inc. (SFLY - Analyst Report), carries a Zacks Rank #1 (Strong Buy) while Angie’s List Inc. (ANGI - Snapshot Report) and Bankrate Inc. (RATE - Snapshot Report) carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%