Ellie Mae Inc (ELLI), Zillow Inc (Z): 1 Hot Housing Stock Wants Out

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Ellie Mae Inc (NYSE:ELLI) could simply be feeling mortal. After blowing analyst profit targets every single quarter since its IPO, Ellie Mae merely met expectations last time out.

Wall Street is still banking on growth here, targeting revenue to climb 30% this year and another 22% come 2014. That’s the kind of growth that is worthy of Ellie Mae Inc (NYSE:ELLI)’s lofty multiple of 22 times next year’s expected earnings, and it may still command a healthy premium to that of a private equity firm or larger financial services firm that can build on Ellie Mae’s business in a way that it may not be able to do on its own.

It is a seller’s market out there. You can’t blame Ellie Mae Inc (NYSE:ELLI) for exploring the sale of its appreciated property.

The article 1 Hot Housing Stock Wants Out originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Ellie Mae and Zillow. The Motley Fool owns shares of Ellie Mae and Zillow. 

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