The importance of expert opinion is never too much in online stock trading. This helps in identifying the various kinds of stocks out there, and something traders will be watching out for are high growth stocks. However, they usually require constant monitoring.
Researching high-growth stocks always seems to involve observing businesses requiring constant monitoring to ensure that their investment potential and financial position remain the same. Investors must, of course, check the stock they own since disruptive events could affect even stable companies. However, there are high-growth stocks that perhaps don’t require any babysitting.
What Makes the Zillow Group Stocks Special?
According to a financial expert from Motley Fool, the extremely positive 2016 Q1 results of the Zillow Group can lead to it being classified among those kinds of high growth stocks that do not need to be under the microscope all the time.
Its 2016 first quarter results reveal revenue growth accelerating by 25% year over year, which was much better than what was accepted. Over 166 million unique investors, which is a company record, visited the Zillow Group’s four sites - Zillow, StreetEasy, HotPads and Trulia - in March. But adverse events are never far away, as we cautioned earlier. There was a trade secrets lawsuit that made its ugly face visible. It involved Zillow competitor Move.com, and that was diverting the financial resources of the group which, as per Zillow’s own admittance, could have been channeled for margin expansion, innovation and growth.
Lofty Settlement That Was Well Accommodated by Zillow
However, things looked up for Zillow and its shares rose significantly, when the company agreed to a settlement worth $130 million which entailed all the parties dismissing their claims and neither of the sides admitting wrongdoing, liability or responsibility. Now $130 million may appear quite a high price to pay for Zillow, but it is well below what some analysts had expected to reach - a whopping $500 million. Besides, Zillow’s guidance had already set apart $50 to $55 million in 2016 for legal fees including the $15.7 million that was already incurred in the first quarter. And there is nothing in this settlement that could warrant a change of the successful way Zillow operates and that has made it reach the existing financial position, since the settlement has only monetary requirements.
These points lead the expert to be convinced that Zillow Group perfectly fits within that category of high growth stocks not requiring constant observation, since the lawsuit is now over and settled. And Zillow can now focus its funds on further growth, expansion and innovation with sustained profitability being the aim. It provides enough space for the long-term growth of the company to take shape.
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