What happened

Real estate shopping specialist Zillow Group (ZG -1.13%) (Z -1.10%) trounced the market last month, as the stock soared 21% compared to a 3.4% uptick in the S&P 500, according to S&P Global Market Intelligence. That increase put Zillow back ahead of the market in a volatile year for investors that's seen shares swing from 60% gains to 10% losses since the start of 2019.

So what

November was all about growth, though, in a rally powered by surprisingly strong third-quarter earnings results. The company revealed early in the month that sales passed management's targets, jumping 117% thanks to robust demand for homes in major markets around the country. These gains have investors salivating at the growth prospects involved in Zillow's business model expanding beyond simply connecting homebuyers to sellers.

Large white house with For Sale sign on the front lawn

Image source: Getty Images.

Now what

Zillow's updated outlook calls for annual sales to land at $2.6 billion, which includes another 100%-plus increase in the fourth quarter. Losses are still projected for both the fourth quarter and the full year, which highlights a major risk involved for investors hoping to jump into this growth stock before it establishes a clear path toward sustainable profits.