Zillow Group Inc. (Z) shares are trading at lower $107.81 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $122.35.
To add more color to this target, the company’s high over the last year is $119.47 and the low is $20.04. Over the last 52 weeks, Z is up 175.38% while the S&P 500 is up 15.19%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, Z reported a profit of $440.47 million. Zillow Group Inc. also saw revenues increase to $656.69 million. In addition, Z has free cash flow of $677.74 million as of 09-2020. The company’s EBITDA came in at $146.07 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. Z has a short ratio of 7.37 and outstanding shares of 165.89M.
Z has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.33 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.43. Zillow Group Inc. Z also noted assets of $6.84 billion at the end of the last quarter. Investors should also keep an eye on sector updates as Z has historically followed its peers on positive news.
All told, Zillow Group Inc. Z has strung together solid data and demonstrated underlying fundamentals. At its current valuation, Z represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Zillow Group Inc. Z is now commanding a market cap of 17.88B and a float of 161.40M. Z is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of Z stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in Z, either long or short, and we have not been compensated for this article.