Zillow Upgraded to Strong Buy - Analyst Blog

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On Jan 7, 2014, Zacks Investment Research upgraded Zillow Inc. ( Z ) to a Zacks Rank #1 (Strong Buy). With a strong return of 181.7% over the past one year and a positive estimate revision over the last 60 days, Zilliow is an attractive investment opportunity.

Why the Upgrade?

Upbeat third quarter revenues and strength in the company's mortgages marketplace segment contributed to the upgrade. Zilliow's Average monthly unique users improved 69.0% year over year to 61.1 million, while total Traffic reached a record 63.7 million in the month of August.

Mobile traffic doubled year over year in the last quarter as approximately 60.0% user visits to Zillow's website were through mobile.

New product launches, which include the newly designed Zillow Real Estate App for Apple's ( AAPL ) iPhone and iPad, are positives. Recently, the company launched the Zillow Digs app for iPhone.

Moreover, Zillow projected a strong guidance for the fourth quarter and fiscal year 2013. For the fourth quarter, Zillow expects revenue to be in the range of $55.0 million to $56.0 million for the fourth quarter of 2013. Total expenses are expected to be in the range of $25.5 million to $26.0 million.  Adjusted EBITDA is expected to be in the range of $8.5 million to $9.0 million.

For full year 2013, revenues are expected to be in the range of $194.0 million to $195.0 million (up from $186.0 million to $188.0 million), while EBITDA is pegged at $23.0 million (up $3.0 million from earlier guidance).

The long-term expected earnings growth rate for Zillow is expected to be 30.0%.

 Other Stocks to Consider:

Investors can also consider other stocks that are doing well right now. These include The Keyw Holdings Corp. ( KEYW ), Smart Technologies Inc. ( SMT ) and Amazon Inc. ( AMZN ) caring a Zacks Rank #1 (Strong Buy).



APPLE INC (AAPL): Free Stock Analysis Report

AMAZON.COM INC (AMZN): Free Stock Analysis Report

KEYW HOLDING CP (KEYW): Free Stock Analysis Report

SMART TECHNOL-A (SMT): Free Stock Analysis Report

ZILLOW INC (Z): Free Stock Analysis Report

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Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , AMZN , KEYW , SMT , Z

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