Since going public in 2011, Zillow’s stock price has risen sharply, fueled by low interests rates and the housing market recovery. Zillow earns a great deal of its income from advertising dollars, underscoring the strong correlation between a solid mortgage and housing sector and the company’s success.
Zillow split its stock in 2015 (into two classes), so now we are following two symbols (Z and ZG). Collectively Zillow is still far below all-time highs, but recent interest in the name has caught my eye. The chart below shows a nice uptrend in Z and a bullish channel with higher lows and higher highs. Volume has been very strong as well, signaling some interest by institutional investors.
Relative strength is overbought, which means it may come back down a few points. Ultimately, I will look for Z to head toward the upper end of the channel (near $30). The break on Monday past resistance was important confirmation that Z is indeed on an upward trend.
Zillow (NYSE: Z) Video Chart Analysis
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About Zillow
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. It offers a portfolio of brands and products to help people find vital information about homes, and connect with local professionals. The companys brands focus on various stages of the home lifecycle, such as renting, buying, selling, financing, and home improvement. Its portfolio of consumer brands includes real estate and rental marketplaces comprising Zillow, Trulia, StreetEasy, and HotPads. The company also provides advertising services to real estate agents and rental and mortgage professionals; and owns and operates various brands that offer technology solutions to real estate, rental and mortgage professionals, including DotLoop, Mortech, Diverse Solutions, and Retsly. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.
