The shares have outperformed the SPX for nine straight days
Zillow Group Inc (NASDAQ:Z) stock is pacing for its 10th straight gain, and its highest close of 2019, thanks to some upbeat analyst attention. Specifically, SunTrust started coverage of Zillow Group (ZG) with a "buy" rating and a Street-high $58 price target, with the analysts calling the company's Homes segment "underappreciated." What's more, Z stock's recent rally could have legs, if past is prologue.
As Schaeffer's Senior Quantitative Analyst Rocky White pointed out, stocks that outperform the S&P 500 Index (SPX) for several consecutive days tend to continue that upward momentum in the short term. That said, below is a list of stocks that have outperformed the SPX by at least seven straight days, as of yesterday's close. Z stock has outshone the broader stock market for nine days, and could make that 10 today, if current gains hold.
Z stock was last seen 1.2% higher at $50.41, on pace for its first close above $50 since August. The security has nearly doubled since its Nov. 20 low of $26.38, but is now facing off against the $50-$51 region -- where Zillow shares landed after a mid-2018 bear gap.
Another round of upbeat analyst attention could help propel the stock above possible half-century resistance. Despite Z's impressive rally in 2019, not to mention its current win streak,only one of five analysts recommend buying the shares. Further, the consensus 12-month price target of $41 represents a steep 18.9% discount to current trading levels, suggesting price-target hikes could be down the pike.
A short squeeze could also fuel the equity's fire. Short interest fell 3.4% during the most recent reporting period, but still accounts for 22% of Z's total available float. At the equity's average daily trading volume, it would take shorts more than eight sessions to buy back the rest of their bearish bets.