Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Housebuilder Shares Continue to Outperform The FTSE 100

The decision to expand our fictional PIN fund, which is focused on housebuilders and other large companies in the property industry, at the end of the second quarter, would have been a wise move, were it not for shares in Zoopla going into freefall during Q3.

As you can see in the table below, Zoopla shares slumped by 24.9% in the three months to the end of September, pushing the
overall return of the PIN Index into negative territory, down by 0.9% in Q3 overall. However, this is still far more favourable than the -7% endured by the FTSE 100 during the same period. Also, the FTSE is down 9% in the 12 months to the end of September, while the Index is up 44%, so anyone following this Index should still be reasonably pleased.

Should Zoopla go? Usually, when 'one bad apple spoils the lot', it is usually advisable to cut your losses on that company and sell the worst performer then re-invest the cash in the shares that are performing. However, after such a drastic fall in just three months, a bounce back appears more likely.

Analysts at Barclays Capital seem to agree and on the 30th of September they kept the same 'overweight' rating for Zoopla Property Group, with a price target of 265, which is almost 27% higher than the Q3 closing price of 208.9, so we will keep it in the Index for at least another quarter to see how it performs moving forward.

Want the full article?