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Wedbush Upgrades Zillow Group Outlook to Outperform

In a recent report, Zillow Group received an upgrade from Wedbush, moving from Neutral to Outperform. Though the average price target suggests a slight downside, projected revenue growth and earnings per share present a mixed picture for investors.

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AI Rating:   6

Wedbush recently upgraded Zillow Group's outlook from Neutral to Outperform, which is generally a positive indication for investors. However, despite this upgrade, the average one-year price target for Zillow Group stands at $58.94/share, representing a 1.34% downside from the recent closing price of $59.74/share. This forecast suggests that while analysts may have a favorable view of Zillow's potential, they also see challenges in its near-term stock performance.

The projected annual revenue for Zillow Group is $2,186MM, indicating an expected growth of 5.55%. This growth in revenue can positively influence investor sentiment as it reflects the company's ability to generate more income compared to prior periods.

Moreover, the projected annual non-GAAP EPS stands at 1.83. This figure plays a crucial role in assessing profitability and overall financial health. Higher earnings per share can lead to increased investor confidence and potentially drive stock prices up.

Institutional ownership has experienced some fluctuations, with a decrease of 2.05% in the number of funds reporting positions in Zillow Group recently. However, the average portfolio weight dedicated to Zillow Group has increased by 6.20%. This indicates that while fewer institutions may hold shares, those that do are allocating a greater portion of their portfolios to this stock, somewhat countering the negative sentiment.

The put/call ratio of Zillow Group stands at 0.57, suggesting a bullish outlook among options traders, as this low ratio indicates more calls than puts.

Investors should consider the mixed signals presented in the report. While forecasts indicate revenue growth and a favorable EPS, the slight expected decline in the stock price coupled with reduced institutional ownership might introduce some caution among potential investors.

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