Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Friday’s Top Upgrades (and Downgrades): Zillow Inc (Z), National Grid plc (ADR) (NGG)

Zillow Inc (NASDAQ:Z)This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include new buy ratings for National Grid plc (ADR) (NYSE:NGG) and Zillow Inc (NASDAQ:Z) . On the other hand, one analyst fears there’s…

No playdate for Children’s Place Retail Stores, Inc.  (NASDAQ:PLCE)
Shares of tyke clothier Children’s Place Retail Stores, Inc.  (NASDAQ:PLCE) are sitting out today’s market rally, dropping 0.5% (and counting) as the rest of the market rises. For this, you can blame the analysts at Goldman Sachs, who have resumed coverage of the stock with a sell rating ahead of Tuesday’s anticipated Q4 earnings release.

According to Goldman, Children’s Place faces “structural pressure … from an increasingly competitive and price sensitive children’s apparel category.” More generally, the analyst also worries about the “inherently high execution and fashion risk” of clothing retail as an industry. In other words, consumers are fickle as a rule. And since there are any number of places out there where they can buy kids’ clothes — and buy them cheap — trying to make a consistent profit in this business is no easy task.

And not just for Children’s Place, either. Sad to say, but with the shares selling for north of $17 apiece today and Children’s Place pegged for only 8% long-term earnings growth, it’s going to be even harder for investors to make a profit on this stock. In short, Goldman’s downgrade announcement may not be welcome news for shareholders — but it’s the right call.

No weeping Zillow Inc (NASDAQ:Z)
Happier news (of a sort) greets investors in online housing voyeur Zillow Inc (NASDAQ:Z) today, as the stock wins an initiation at “outperform” from the analysts at RBC Capital. With its growth rate pegged for 30% — three-and-a-half times what Children’s Place is expected to produce — RBC sees Zillow Inc (NASDAQ:Z) outperforming the market handily.

Unfortunately, so does everyone else. That’s why Zillow shares have already run up 65% in price over the past year. And that’s why Zillow Inc (NASDAQ:Z) shares are now too expensive to buy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.