On Thursday, the Relative Strength (RS) Rating for Zillow stock topped a key technical benchmark. It jumped into the 80-plus percentile with an improvement to 83, surging from 65 the day before. Zillow stock shot up more than 8% Thursday to just below a buy point.
The 83 Relative Strength Rating shows that Zillow stock bested 83% of all stocks this past year for price performance.
It's a bullish indicator. Market research shows that the best stocks typically have an 80 or better RS Rating in the early stages of their moves. It should be noted that although Zillow's stock is popping its fundamentals still need work. Last quarter it reported small sales growth and a mild drop in earnings per share.
The real estate sector took a hit this past year along with other industries amid inflation and rising interest rates. And, also like other sectors, real estate seems to be perking up after the Fed said Wednesday that interest rates will likely come down in 2024.
Zillow Stock Seems Positioned For Growth
IBD's Stock Market Today noted on Thursday that homebuilders like Lennar are seeing improvement. "Lennar (LEN) rose nearly 7% with earnings due after the market close. Shares are extended from a breakout at 131.27. The stock is one of many in the housing sector rallying as Treasury yields tumble." Lennar reported earnings late Thursday that beat estimates.
Looking For The Best Stocks To Buy And Watch? Start Here
Seattle, Wash.-based watchlist candidate Zillow provides online real estate data and connects homebuyers with sellers and mortgage lender.
Rapidly Closing On Buy Point
Zillow stock is working on a cup-without-handle pattern with a 55.68 buy point. It's homing in on that buy point and closed just below it at 54.50 Thursday, up 8.4% for the day. The real estate play got an upgrade from JMP Securities on Tuesday to an outperform rating. The upgrade comes amid expectations that falling interest rates will boost real estate sales. Zillow stock closed higher in eight of the last 10 trading sessions.
Earnings last quarter fell 13% to 33 cents per share. Revenue grew 3% to $496 million.
Zillow stock operates online and it's in the IBD Internet-Content industry group. It earns the No. 13 rank among its peers in the 78-stock group. Facebook parent Meta Platforms and software company SEMrush Holdings are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's Relative Strength Rating measures price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
