Zillow Group Inc (Z) Stock Analysis
Verdict: WATCH (do not buy)
Transition to Zillow Preferred and 7% job cuts bolster operating leverage, but a high P/E of 121x and macro real estate drag cap momentum.
Investment score: 47/100
Analysis as of
Is Zillow Group Inc stock worth reviewing? The TradeMates thesis
Zillow is undergoing a strategic operational transition toward its Zillow Preferred model while restructuring expenses via 500+ layoffs. While top-line growth remains healthy at +17.67% YoY, valuation is stretched at 121.35x TTM earnings and macro housing headwinds limit immediate re-rating potential.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 68/100 (weight 15%)
- Technical Momentum: 25/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 42/100 (weight 15%)
Zillow Group Inc opportunities and risks
What speaks for Z
- Operating leverage expansion from 7% workforce restructuring
What speaks against Z
- Macro housing market stagnation and high mortgage rates
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| Z | 121.4x | 2.4x | 19.3x | 72.9% | 2.0% | 3.9% |
| CBRE | 29.8x | 0.9x | 17.3x | 17.7% | 3.0% | 2.5% |
| JLL | 14.3x | 0.5x | 10.5x | 89.6% | 3.6% | 8.9% |
| CSGP | 150.4x | 3.1x | 26.5x | 76.5% | 2.1% | 2.8% |
| COMP | 86.5x | 0.5x | 84.4x | 12.7% | 0.6% | 2.3% |
| NMRK | 15.2x | 0.5x | 7.8x | 96.1% | 4.1% | 40.5% |
| Peer median | 29.8x | 0.5x | 17.3x | 76.5% | 3.0% | 2.8% |
Frequently asked questions about Zillow Group Inc (Z)
Is Z stock a good investment?
The TradeMates model rates Zillow Group Inc as WATCH (do not buy) with an investment score of 47/100. Zillow is undergoing a strategic operational transition toward its Zillow Preferred model while restructuring expenses via 500+ layoffs. While top-line growth remains healthy at +17.67% YoY, valuation is stretched at 121.35x TTM earnings and macro housing headwinds limit immediate re-rating potential. This is algorithmic model output, not personal investment advice.
Is Z stock a buy?
The TradeMates model verdict for Z is WATCH (do not buy) with an investment score of 47/100. Treat this as a model signal to review, not a personal buy recommendation.