Zillow Group, Inc. (ZG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Zillow Group, Inc. (ZG) Media & Communications Profile

Zillow Group, Inc. connects consumers with real estate information, boasting a diverse portfolio of brands like Zillow, Trulia, and StreetEasy. Operating across Homes, Internet, Media & Technology, and Mortgages segments, Zillow leverages technology to streamline the real estate experience in a competitive online marketplace.

What Is the Investment Thesis for ZG?

With a market capitalization of $7.66B and a gross margin of 73.3%, Zillow demonstrates strong financial health. Key value drivers include the continued growth of its IMT segment, driven by premier agent and rental marketplaces. Catalysts include the ongoing expansion of its mortgage offerings and the increasing adoption of its business software solutions. However, investors should be aware of the company's high beta of 2.11, indicating significant volatility, and a P/E ratio of 136.41, suggesting a premium valuation. The company's profitability, indicated by a 2.3% profit margin, needs to be monitored for sustainable growth.

Based on FMP financials and quantitative analysis

ZG Key Highlights

Market Cap of $7.66B reflects Zillow's significant presence in the digital real estate market.

• Gross Margin of 73.3% indicates strong pricing power and efficient cost management.
• P/E Ratio of 136.41 suggests a premium valuation, reflecting high growth expectations.
• Profit Margin of 2.3% indicates room for improvement in profitability.
• Beta of 2.11 signifies high volatility compared to the broader market.

Who Are ZG's Competitors?

ZG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ZG's Key Strengths?

Strong brand recognition and market leadership in online real estate.

• Comprehensive suite of services across the real estate value chain.
• Vast data and analytics capabilities.
• Large and engaged user base.

What Are ZG's Weaknesses?

Reliance on advertising revenue, which can be cyclical.

• Homes segment involves capital-intensive inventory management.
• Profitability margins could be improved.
• High beta indicates significant stock price volatility.

What Could Drive ZG Stock Higher?

ZG catalyst: Continued growth in the Premier Agent program, driven by increased agent adoption and enhanced features.

• Expansion of the rentals marketplace, capitalizing on the increasing demand for rental properties.
• Potential acquisitions or partnerships to expand Zillow's service offerings and market reach.
• Innovation in mortgage services, including streamlined application processes and competitive loan products.

What Are the Key Risks for ZG?

Rich valuation — a P/E of 136.41 runs well above the Communication Services sector’s ~17.60x, leaving little room for a miss.

• Fluctuations in housing market conditions and interest rates impacting transaction volumes.
• Competition from other online real estate portals and traditional real estate agencies.
• Regulatory changes affecting the real estate industry and mortgage lending practices.
• Economic downturns impacting consumer spending and advertising budgets.
• Data security breaches or privacy concerns affecting user trust and platform usage.

What Are the Growth Opportunities for ZG?

• Expansion of Mortgage Services: Zillow has the opportunity to significantly expand its mortgage services segment. By offering competitive home loan products and streamlining the mortgage application process, Zillow can capture a larger share of the $2 trillion mortgage market. The company's existing platform and user base provide a strong foundation for cross-selling mortgage products to potential homebuyers. Success in this area could drive substantial revenue growth and increase customer lifetime value.
• Premier Agent Program Growth: The Premier Agent program within the IMT segment represents a significant growth opportunity. By attracting more real estate agents to the platform and enhancing the value proposition of the program, Zillow can increase its revenue from agent advertising and related services. The program benefits from network effects, as more agents on the platform attract more potential homebuyers, and vice versa. Continued investment in technology and marketing can further accelerate the growth of this program.
• Rental Marketplace Expansion: Zillow's rental marketplace offers another avenue for growth. With increasing demand for rental properties in urban areas, Zillow can capitalize on this trend by expanding its rental listings and enhancing its search and filtering capabilities. By providing a comprehensive platform for renters and landlords, Zillow can attract a larger share of the online rental market. Strategic partnerships with property management companies can further boost the growth of this segment.
• New Construction Marketplace: Zillow's new construction marketplace connects homebuyers with builders and developers. By expanding this marketplace and providing tools for virtual tours and online sales, Zillow can tap into the growing demand for new homes. The company can also leverage its data and analytics to provide insights to builders and developers, helping them to optimize their marketing and sales strategies. This segment offers a unique opportunity to capture a share of the new home market.
• Dotloop Business Software Solutions: Dotloop, Zillow's business software solution for real estate professionals, presents a growth opportunity by streamlining transaction management. By expanding the features and integrations of Dotloop, Zillow can attract more real estate agents and brokers to the platform. The software improves efficiency and collaboration among agents, clients, and other parties involved in real estate transactions. Increased adoption of Dotloop can generate recurring revenue and strengthen Zillow's relationships with real estate professionals.

What Are ZG's Competitive Advantages?

• Brand Recognition: Zillow has established a strong brand presence and is a well-known name in the online real estate market.
• Network Effects: Its platform benefits from network effects, as more users attract more listings, and vice versa.
• Data and Analytics: Zillow possesses a vast amount of real estate data, providing valuable insights to consumers and professionals.
• Comprehensive Ecosystem: Zillow offers a comprehensive suite of services across the real estate value chain.

What Does ZG Do?

Zillow Group, Inc. was founded in 2004 and has since become a leading digital real estate company, transforming how people buy, sell, rent, and finance homes. The company's evolution is marked by its innovative approach to providing comprehensive real estate information and tools to consumers. Zillow operates through three key segments: Homes, Internet, Media & Technology (IMT), and Mortgages. The Homes segment focuses on the direct buying and selling of homes, along with providing title and escrow services. The IMT segment encompasses a suite of marketplaces including premier agent, rentals, and new construction, complemented by business software solutions like dotloop. The Mortgages segment offers home loans and related marketing products. Zillow's portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East, each catering to specific segments of the real estate market. Headquartered in Seattle, Washington, Zillow leverages its technology and data to empower consumers and real estate professionals alike.

What Products and Services Does ZG Offer?

• Operates online real estate marketplaces via mobile apps and websites.
• Facilitates the buying and selling of homes through its Homes segment.
• Offers title and escrow services to home buyers and sellers.
• Provides premier agent, rentals, and new construction marketplaces.
• Offers business software solutions like dotloop to real estate professionals.
• Provides home loans and mortgage-related services.

How Does ZG Make Money?

• Generates revenue from the resale of homes in its Homes segment.
• Earns advertising revenue from premier agent, rentals, and new construction marketplaces.
• Provides software solutions (dotloop) to real estate professionals for subscription fees.
• Offers mortgage services and related marketing products, generating revenue from loan origination and fees.

What Industry Does ZG Operate In?

Zillow Group, Inc. operates within the dynamic Internet Content & Information industry, a sector characterized by rapid technological advancements and evolving consumer preferences. The real estate market is undergoing a digital transformation, with online platforms playing an increasingly crucial role in property search, transactions, and financing. Zillow competes with other online real estate portals and traditional real estate agencies, striving to capture a larger share of the growing digital real estate market. The industry is driven by factors such as increasing internet penetration, mobile adoption, and the demand for transparent and accessible real estate information.

Who Are ZG's Key Customers?

• Home buyers and sellers seeking to transact in the real estate market.
• Real estate agents and brokers looking to connect with potential clients.
• Renters searching for apartments and houses.
• Builders and developers marketing new construction properties.
• Mortgage borrowers seeking home loans.

Over the past six months, Zillow Group, Inc. insiders filed 29 SEC Form 4 transactions — 27 sales and 2 purchases. On net that is roughly 211K shares acquired (about $5.0M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: Zillow Group, Inc.

Revenue for Zillow Group, Inc. came in at $772.0M during Q2 FY2026, a 9.0% improvement versus the preceding quarter. The company recorded a net loss of $4.0M, with diluted EPS of $-0.02. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Communication Services company. Across the four most recent quarters, ZG averaged $0.06 in diluted EPS.

ZG Valuation & Market Position

With a $7.66B market cap, Zillow Group, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $32.00 to $80.00, with a consensus of $48.87. At the current price of $31.88, that implies approximately 53% upside potential. Relative to its peer group, ZG's quantitative score of 61/100 is below the peer average of 76/100.

Return on equity for Zillow Group, Inc. stands at 1.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. ZG trades at a trailing price-to-earnings ratio of 136.41, above the Communication Services sector average of ~17.60x. Its free cash flow yield is 3.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.92 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.8%, the inverse of the P/E and a quick read on earnings relative to price.

Zillow Group, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 4.89 places it in the safe zone, indicating low near-term bankruptcy risk.

Zillow Group, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 4.7% above estimates on average.

Company Profile

Zillow Group, Inc. operates in the Internet Content & Information industry within the Communication Services sector. It is headquartered in Seattle, US. The company is led by CEO Jeremy Wacksman. ZG has traded publicly since 2011.

ZG Financials

ZG Latest News

ZG Analyst Consensus

ZG MoonshotScore

Zillow Group, Inc. Communication Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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