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Is the REA Group share price a strong contrarian buy?

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Growth Shares

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  • The REA Group Ltd share price has fallen by about 35% in the past year.
  • REA Group describes itself as a multinational digital advertising business, specialising in property.
  • Australian revenue grew 11% to $1.7 billion, Australian operating profit before associates rose 13% to $1.1 billion, net profit after tax rose 15% to $650 million and earnings per share climbed 15% to $4.93.
  • Combined Melbourne and Sydney listings declined by 13%, while Brisbane, Perth and Adelaide increased by 13%.
  • The average price target of those analyst ratings was $188.50, which implies a possible rise of 27% over the next year from where it is.

5 sentences from our version of the report, chosen to cover it. Nothing here is written; every line is in the article below. How

The REA Group Ltd share price has fallen by about 35% in the past year. REA Group describes itself as a multinational digital advertising business, specialising in property.

The report’s most important sentence, shortened and in plain words. How

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The REA Group Ltd share price has fallen by about 35% in the past year. Not many S&P/ASX 200 Index shares have fallen that far over the same time period.

REA Group describes itself as a multinational digital advertising business, specialising in property.

The company also owns Mortgage Choice, an Australian mortgage broking franchise group, PropTrack, a leading provider of property data services, Campaign Agent, Australia's leading provider of vendor-paid advertising finance solutions to the Australian real estate market and Realtair, a digital platform providing technology for the real estate transaction process.

As you can see, REA Group has a strong presence across the real estate sector.

Australian revenue grew 11% to $1.7 billion, Australian operating profit before associates rose 13% to $1.1 billion, net profit after tax rose 15% to $650 million and earnings per share climbed 15% to $4.93.

The company noted some highlights for realestate.com.au, with 12.7 million people visiting the portal on average each month.

Combined Melbourne and Sydney listings declined by 13%, while Brisbane, Perth and Adelaide increased by 13%.

Management expects a low double-digit controllable residential buy yield, excluding the impact of the geographical mix, driven by a 80% premium price increase and growth in add-ons.

The average price target of those analyst ratings was $188.50, which implies a possible rise of 27% over the next year from where it is.

Shortened to 1 minute of reading, this version reads 11.7 on the Niral Score.

You are reading our version, not theirs. This is The Motley Fool Australia's report shortened to its most important sentences, in plainer words, with verdicts and loaded words taken out. Plain description stays, and so do adjectives that carry a fact, such as "former" or "federal". The reporting, the facts and the quotations are theirs — quotations are never edited — and the indicators beside it measure this version. Hover or tap Adjectives to see every one left in the text.

How this outlet filed it, and how we rewrote it

No other newsroom we read has filed on this event, so there is nothing to compare it with yet.

Outlet Niral ScoreAdjectivesSourcingSentimentHappiness
The Motley Fool Australiaas they published this story 12.8 15 42 0.4 52.6
Mundane Readneutralized from The Motley Fool Australia 11.8 14 42 0.4 52.6

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