Zillow Group (Z) shares surged 6.41% in Wednesday's trading session, as investors reacted positively to Jefferies analysts naming the company one of their top picks for the first-quarter earnings season. The real estate technology company's stock performance outpaced the broader market, reflecting growing optimism about its upcoming financial results.

Jefferies analysts expressed confidence in Zillow's prospects, projecting that the company will post its fourteenth consecutive quarter of beating revenue and EBITDA expectations. This optimistic outlook is attributed to a modestly stronger housing market, which could boost Zillow's performance. Additionally, analysts will be closely watching for signs that Zillow's Real Time Touring product is driving further outperformance for its Premier Agent solution, potentially contributing to the company's strong results.

The positive sentiment surrounding Zillow comes as part of a broader analysis of internet companies' first-quarter results. Jefferies suggests that the Q1 earnings season could act as a "positive catalyst" for the sector if expectations for fiscal year 2025 remain relatively intact. This outlook, combined with Zillow's position as a top pick, appears to have fueled investor enthusiasm and contributed to the significant stock price increase.