ZG Named "Catalyst Call Buy" by Deutsche Bank

Zillow could be ripe for even more upgrades, too

Digital Content Manager
Sep 16, 2020 at 9:09 AM
facebook twitter linkedin


The shares of Zillow Group Inc (NASDAQ:ZG) are set to open at fresh highs this morning, up 3.1% at $93.80 in pre-market trading. This surge comes on the back of an upgrade from Deutsche Bank to $115 from $106 -- a more than 26% premium to last night's close. The analyst named Zillow a "catalyst call buy" and added that the $4.8 billion special purchase acquisition company (SPAC) deal for real estate start-up Opendoor could help Zillow "get more valuable attribution for the Homes Segment of its business."

With the housing market booming, it's no wonder Zillow has been aggressively clawing its way back up the charts. The shares briefly consolidated below the $65 level -- home to its pre-pandemic highs -- back in July and early August, but were able topple this level with the help of the 10-day moving average. ZG's 30-day moving average has also been significant -- capturing a pullback earlier this month. For the year, ZG has nearly doubled. 

This could leave the door wide open for even more bull notes. While 10 covering ZG call it a "buy" or better, 10 still say "hold," and two a "sell" or worse. Plus, coming into today, the 12-month consensus price target of $85.58 sits at a 6% discount to Monday's close. 

Option traders have been quicker to come around to ZG. The stock sports a 50-day call/put volume ratio of 3.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 90% of readings from the past year, suggesting long calls have rarely been more popular. 

 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners