Zillow, Inc. (NASDAQ:Z) is a real estate and home-related information marketplaces. Zillow provides products and services to help consumers through every stage of homeownership buying, selling, renting, borrowing and remodeling. The Company make home-related decisions, and enabling homeowners, buyers, sellers and renters to find and connect with local professionals. Individuals and businesses that use Zillow have updated information on more than 37 million homes and have added nearly 100 million home photos. These profiles include detailed information about homes such as property facts, listing information, and purchase and sale data. In June 2012, the Company acquired RentJuice Corporation. In October 2012, the Company acquired Buyfolio, an online and mobile collaborative shopping platform. In December 2012, the Company acquired San Francisco-based HotPads, a map-based rental and real estate search site.
Zillow has experienced exponential growth over the last year and their share price has clearly followed suit with optimism from institutions and retail investors a like. As you can see from the chart below is trading just under a 52-week high. Despite the gains already locked in there is a lot more upside in this stock.
Just recently, on April 16th, Zachs Investment Research upgraded Zillow with a strong buy recommendation. That was not ill advised as Zillow has implemented many game changing realestate tools for the online age. Among them are mobile apps for renters and buyers looking for realestate. New tools for agents and brokers that want to expand their business and an expansion into the ever important Spanish market to support that booming population.
If Alexa.com is any indication traffic is heading in the right direction as a quick look shows zillow steadily climbing the ranks as one of the internet's most popular sites. Currently ranked in the top 375 sites globally and a very impressive 63rd in the United States. Up from the 450 range at the start of March.
A quick check of outstanding short interest shows that a monster squeeze could be on the horizon if Zillow posts another impressive quarter. A whopping 24.83% of the total shares in the float are reported short. With a tiny average daily volume of only 435,000 shares this has the potential to mean a 33% or bigger gain on any significant surprise in the earnings.
Historical earnings performance has also been very impressive. Three out of the last four quarters were earnings beats with an average beat of over 400%. That momentum has propelled Zillow into a whole new price range. Zillow is scheduled to report earnings after the close on May 7th. I for one will be watching the pending results and look for Zillow to crush the competition well into the future.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in Z over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.