Zillow Is Overvalued

You want power? You want strength? Take a look at Zillow (Z), the heavily shorted real estate Web play that is soaring. The shares are up $6 on the day, and are now trading well above where the company priced its $82 secondary. Considering that the secondary was poorly received initially and broke price immediately, this is a remarkable renaissance. It's the only part of the housing-real estate sector that's doing well -- even as it is by far the most overvalued of all the stocks in the industry.

By contrast, Realogy (RLGY), which represents 26% of all transactions, is barely up today even as it put on its best face on "Mad Money" last night and sales continue to  grow at a 17% to 19% pace. Realogy's now a plus $3 billion company and all it does is list real estate. Despite Realogy's $5 billion in sales, the company is valued at about $6 billion and is barely up this year....227 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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