• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Investing

Is Zillow stock a buy or sell as it pauses home-flipping service to clear backlog?

by October 18, 2021
by October 18, 2021

On Monday, Zillow Group Inc. (NASDAQ:ZG) shares declined by 9% after the company said it won’t be buying more houses after reaching capacity for the year. Zillow is pausing its property-flipping services amid a growing backlog of unrenovated homes.

The company is facing shortages of workers used to fix up the property amid rising demand for Zillow Offers. As a result, it has paused new purchases until it can find a solution for the backlog.

A Zillow spokesperson wrote in an email:

We are beyond operational capacity in our Zillow Offers business and are not taking on additional contracts to purchase homes at this time.

Investors fear the company could lose a significant share of the year-end business to its close peer, Opendoor Technologies Inc. (BMV:OPEN1).

Is it too late to sell ZG shares?

From an investment perspective, Zillow shares trade at steep trailing 12-month and forward P/E ratios of 158.22 and 78.91, respectively. As a result, value investors may opt for alternatives in the market.

However, with analysts expecting earnings to grow by more than 51% this year before rising at an average annual rate of 73.50% over the next five years, its growth prospects look exciting.

Therefore, investors willing to overlook short-term turbulence could find it as a compelling option for the portfolios.

Source – TradingView

Technically, Zillow shares seem to be trading within a descending channel formation in the intraday chart. In addition, the stock pulled back sharply on Monday, pushing the stock closer to oversold conditions.

Therefore, given ZG’s exciting growth prospects, long-term investors could choose to capitalise on the pullback by targeting profits at about $96.22, or higher at $111.77.

On the other hand, $73.32 and $55.88 are crucial support zones.

It could be time to buy

In summary, although Zillow shares trade at steep valuation multiples, its long-term growth prospects outweigh short-term risks. 

Therefore, with shares pulling back sharply on Monday, it could be a perfect opportunity to invest in ZG stock.

The post Is Zillow stock a buy or sell as it pauses home-flipping service to clear backlog? appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
Disney stock price forecast for Q4 2021 after delaying several films
next post
Best places to buy Bitcoin ETF ‘BITO’ as the first Bitcoin futures ETF officially makes its debut today

Related Posts

Deere down 15% despite strong results: ‘I like...

May 20, 2022

Twitter stock won’t ‘fall a whole lot’ if...

May 20, 2022

Jablonski is bullish on Amazon: ‘a lot of...

May 20, 2022

Alibaba stock price outlook: Why BABA is a...

May 20, 2022

Deckers Outdoor opened 20% up on Friday: what...

May 20, 2022

Palo Alto Q3 results: ‘getting more interest from...

May 20, 2022

Expert opinion: JPMorgan stock down 30% isn’t ‘that...

May 19, 2022

S&P 500 falls again as bears push stocks...

May 19, 2022

Ross Stores shares tank 25% on Q1 results

May 19, 2022

Bill Nygren gives away his favourite financial stock

May 19, 2022

Recent Posts

  • Deere down 15% despite strong results: ‘I like it for long-term’

    May 20, 2022
  • Twitter stock won’t ‘fall a whole lot’ if Musk walks away

    May 20, 2022
  • Jablonski is bullish on Amazon: ‘a lot of the issues are resolvable’

    May 20, 2022
  • Alibaba stock price outlook: Why BABA is a bargain

    May 20, 2022
  • Superstitious Storytellers

    May 20, 2022
  • Deckers Outdoor opened 20% up on Friday: what happened?

    May 20, 2022

Editors’ Picks

  • 1

    2 Canadian marijuana stocks to keep a close eye on

    February 5, 2022
  • 2

    Nvidia Corporation earnings beat not sufficient to boost stock – Is it a good buy?

    February 18, 2022
  • 3

    The IMF Should Be Eliminated, Not Expanded

    October 12, 2021
  • 4

    Micron Technology shares are trading lower after-hours: here’s why

    September 29, 2021
  • 5

    Here’s what inflation might look like in 2022

    November 23, 2021
  • 6

    Is Clorox stock a good buy ahead of its fiscal Q1 2022 results?

    October 30, 2021
  • 7

    Vaccine Authoritarianism Explained

    November 6, 2021
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economy (812)
  • Editor's Pick (310)
  • Investing (2,500)
  • Stock (10)
About Us Terms & Conditions Privacy Policy Email WhiteListing Contact Us

Disclaimer: Portfolioperformancetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick

Read alsox

Is it time to buy Wolfspeed shares...

October 28, 2021

Netflix beats on new subscribers by more...

October 19, 2021

Creative Realities up 80% after announcing a...

November 15, 2021