Zillow Group Inc (ZG) Stock Analysis
Verdict: WATCH (do not buy)
Market dominance and 73% gross margins are overshadowed by zero operating leverage and heavy insider selling in a high-rate environment.
Investment score: 42/100
Analysis as of
Is Zillow Group Inc stock worth reviewing? The TradeMates thesis
Zillow remains a market leader with superior top-of-funnel traffic, but its inability to convert 73% gross margins into meaningful net income (2.27%) makes it vulnerable. Valuation remains detached from peers like JLL/CBRE, and technical momentum is decisively bearish.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 50/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 55/100 (weight 15%)
- Insider Sentiment: 10/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Zillow Group Inc opportunities and risks
What speaks for ZG
- Revenue Growth Outperformance
What speaks against ZG
- Sensitivity to Mortgage Rates/Macro
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ZG | 124.0x | 2.9x | 22.2x | 73.3% | 2.3% | 4.3% |
| CBRE | 29.6x | 0.9x | 16.7x | 35.0% | 3.1% | 2.3% |
| JLL | 15.5x | 0.5x | 11.2x | 89.4% | 3.3% | 7.1% |
| CSGP | 530.5x | 3.9x | 46.1x | 77.4% | 0.7% | 1.8% |
| Z | 124.0x | 2.9x | 22.2x | 73.3% | 2.3% | 4.3% |
| COMP | 424.1x | 0.6x | n/a | 19.1% | 0.2% | 0.3% |
| Peer median | 124.0x | 0.9x | 16.7x | 73.3% | 2.3% | 2.3% |
Frequently asked questions about Zillow Group Inc (ZG)
Is ZG stock a good investment?
The TradeMates model rates Zillow Group Inc as WATCH (do not buy) with an investment score of 42/100. Zillow remains a market leader with superior top-of-funnel traffic, but its inability to convert 73% gross margins into meaningful net income (2.27%) makes it vulnerable. Valuation remains detached from peers like JLL/CBRE, and technical momentum is decisively bearish. This is algorithmic model output, not personal investment advice.
Is ZG stock a buy?
The TradeMates model verdict for ZG is WATCH (do not buy) with an investment score of 42/100. Treat this as a model signal to review, not a personal buy recommendation.