Zillow Group Inc. (Z) reported loss of -0.87% in market trading today. As of July 31, the company outlined that home sales are trending higher when compared to the same period of last year. Zillow has reported a 16.1% increase versus last year’s same period.
The company reported that its newly pending sales have dropped by 1.4% month over month due to seasonal trends, but they have surged up to 16.1% year over year and are continuously showing swift growth. Zillow’s new for-sale listings are down by 2.2% from last week and currently have dropped up to 12.2% year over year period. Moreover, the company outlined its list prices have shown steady growth throughout the year and have increased by 0.3% week over week to $342,660, up 6% compared to prior year at the same time.
At $69.29 per share, the company is currently around 52.15% up year to date in the stock market. At the time of writing, Zillow Group Inc. (Z) has a market cap of $10.29 billion. The average transaction volume for Z over the past month (2994627 shares per day) is trailing its average daily volume over the past year by -17.1, which suggests market participants have been less active in this stock of late.
Zillow Group Inc. (Z) has been in rally mode, as indicated by the relationship between its 200-day and 20-day major moving averages. That said, over the past 30 days, Z shares have risen 26.26%. The stock has moved up 39.91 over the trailing 12 months, gaining behind the rest of the market by 347.42%. It has also trailed competitors and similar names by 41.56%.
Looking at Key Indicators
Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where Z shares could be headed. That’s why we need to dig a little deeper and check out what some of the most important momentum indicators seem to be saying.
The relationship between changes in price and the underlying strength or weakness over periods can point out deeper factors in the pattern that can often generate insights for technical analysts through momentum factors. Two of our favorite oscillating indicators are the Relative Strength Index (RSI) and the Stochastic %k Oscillator. In each case, the scoring is on a scale somewhere between 0 and 100, and in case, the levels to watch are “70” and “30”, with the former representing an “overbought” state and the latter presenting an “oversold” state.
With that in mind, here is a look at Z shares from this perspective. The 20-day RSI reading for Z is currently 61.55, which indicates that is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. If we look at the 20-day Stochastic %k measure, we find it at 87.61, which represents another indication of a overbought outlook.
Listening to the Analysts
Right now, Z shares appear to be trading 18.93% under the average price target for one year ahead from Wall Street analysts, which is at $58.26. On average, Street analysts put their recommendation at 2.40, which is scored on a scale from 1 to 5, with 1 representing a “Strong Buy” and 5 representing a “Strong Sell”.
That suggests analysts are neutral on Z looking ahead over the coming 12 months.
Assessing the Risk
We would also note that Z has posted average daily volatility over the past two weeks of 41.33%, or 35.55% less than it has scored on the same measure over the past hundred days.
The Fundamentals in Focus
As we now turn to the fundamental picture, we begin by analyzing it the way one might analyze a building: by starting with the foundation – the balance sheet. Without a strong foundation, the rest of the structure can’t stand.
For Z, cash levels are currently sitting at 1.62 billion. That figure is balanced by 671.48 million in current liabilities. But that has to be put in context. The company’s debt levels have been falling. To further round out the picture, total assets are at 5.87 billion and total liabilities sit at 2.46 billion, granting a pretty thorough ground-up sense of the company and how it might withstand challenges ahead, should they appear.
In terms of recent free cash flow, Z, is currently reporting 269.02 million, which represents a quarterly net change of 393.23 million in cash flowing in the door. In terms of operations, the company reported 301.99 million in net operating cash flow.
Looking at the revenue path, we saw last quarter’s top-line number come in at 1.13 billion in total revenues, which represents a y/y quarterly change of -147.92, and a sequential quarterly sales grow of 147.90%.
That brings us to the real meat of the matter: the bottom line. Zillow Group Inc. (Z) yielded a gross basic income of 364.15 million, which comes on a Cost-of-Goods-Sold number registering at 761.67 million, seated in 211.0 million total diluted outstanding shares, adding up to earnings per share of -1.93. Notably, the consensus view of analysts looking ahead to next quarter is currently at -0.34.
That allows us to round out this picture with a look at valuations. Based on this data, and the forecasts we have at hand, the coming fiscal year looks to be headed toward -1.04 in total earnings per share.
However, estimates are only guesses about the future. Both business and investment trends are more important to take into consideration.