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Analysts have responded positively to Redfin’s performance. Tom White of D.A. Davidson upgraded his rating of the firm from sell to neutral on Thursday, attributing this change to an improved valuation and increase in Redfin’s market share. In a similar vein, Robert Mollins from Gordon Haskett adjusted his rating due to Redfin’s relative underperformance against the S&P 500 index.
According to InvestingPro data, Redfin’s market cap stands at 797.83M USD, while its revenue growth is at 25.48%. The company’s P/E ratio is -3.20, implying that it has yet to turn a profit. The company’s stock has experienced a significant drop over the last three months, with a 49.68% decline in price. Despite this, Redfin’s year-to-date price total return is positive, at 64.62%.
Redfin’s CEO, Glenn Kelman, suggested that the housing market hit “rock bottom” in the summer. His statement implies that a recovery may be on the horizon, which could explain the slight increase in Redfin’s stock despite the overall downward trend in pending home sales.
In comparison with other major market benchmarks such as the Nasdaq Composite and S&P 500, Redfin’s stock has shown relative underperformance. The recent upgrade by analysts and the slight uptick in stock value indicate a possible shift in market sentiment towards the company.
InvestingPro Tips suggest that despite the rough patch, Redfin’s revenue growth has been accelerating, and it operates with a strong free cash flow yield. However, the stock is currently in oversold territory, and four analysts have revised their earnings downwards for the upcoming period. These insights suggest that while Redfin may be facing some headwinds, there are also reasons for optimism. For more in-depth analysis and tips, consider subscribing to InvestingPro.
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