ZG Should I Buy
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Zillow Group Inc (ZG) is not a strong buy at this moment for a beginner investor with a long-term strategy. While the pre-market price is up 2.88% and there are some positive financial growth indicators, the company's mixed financial performance, bearish technical indicators, and lack of strong trading signals suggest a cautious approach. The legal overhangs and uncertain housing market outlook further weigh on the stock's potential for immediate long-term gains.
The MACD histogram is positive and expanding (0.576), which is a bullish signal. However, the RSI is neutral at 71.822, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R2: 45.107), which may limit further upside in the short term.
Revenue increased by 18.05% YoY in Q4 2025, showing operational progress. Analysts acknowledge the company's initiatives to drive incremental growth and improve margins over time.
Net income dropped significantly (-105.77% YoY), and EPS also declined (-104.55% YoY). Legal expenses are weighing on EBITDA, and the housing market remains challenging. Analysts have broadly lowered price targets, reflecting cautious sentiment.
In Q4 2025, revenue grew 18.05% YoY to $654 million. However, net income dropped to $3 million (-105.77% YoY), and EPS fell to 0.01 (-104.55% YoY). Gross margin also declined to 72.78 (-4.00% YoY).
Analysts have mixed views. While some firms maintain Buy ratings (e.g., Citi, DA Davidson, JPMorgan), most have lowered price targets significantly, reflecting cautious sentiment. The average price target is in the $50-$84 range, with a Neutral consensus dominating.
