Zillow Upgraded, Analyst Predicts Strong Growth With Lower Mortgage Rates On The Horizon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 16 2024
0mins
Should l Buy Z?
Source: Benzinga
Zillow Stock Upgrade: Zillow Group, Inc. shares rose after Wedbush upgraded the stock from Neutral to Outperform and increased its price target from $50 to $80, citing potential benefits from lower mortgage rates for its brokerage business.
Revenue Projections: Analyst Jay McCanless raised FY25 revenue estimates to $2.5 billion and AEBITDA to $679 million, with growth expected in Residential and Rental revenues, while also projecting a 5% year-over-year increase in mortgage revenue.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 44.530
Low
70.00
Averages
87.40
High
100.00
Current: 44.530
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Datadog Exceeds Expectations: Datadog shares surged 28% after reporting Q1 earnings of 61 cents per share, surpassing the 51-cent consensus, with Q2 revenue guidance between $1.07 billion and $1.08 billion, reflecting strong market demand.
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- Shake Shack's Poor Performance: Shake Shack reported first-quarter revenue of $366.7 million, falling short of the $372 million consensus estimate, leading to a 17% drop in shares and an operating loss of $2.6 million, highlighting pressures in the competitive fast-food market.
- McDonald's Beats Expectations: McDonald's posted adjusted earnings of $2.83 per share for the first quarter, exceeding the $2.74 expected by analysts, with revenue of $6.52 billion slightly above the $6.47 billion consensus, resulting in a 3.2% increase in shares, reflecting strong market performance.
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- DoorDash's Optimistic Guidance: DoorDash anticipates second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, surpassing the $32.43 billion expected by analysts, with first-quarter earnings of $0.42 per share exceeding the $0.36 forecast, leading to a 10% rise in shares and showcasing growth potential.
See More
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- Target Price Adjustment: Zillow Group Inc. has reduced its target price for Piper Sandler from $70 to $55.
- Market Impact: This adjustment reflects changes in market conditions and expectations for Zillow's performance.
See More
Rosen Law Firm Investigates Potential Securities Claims Against Zillow Group
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against Zillow Group (NASDAQ: Z, ZG) for allegedly issuing misleading business information, highlighting its commitment to protecting investor rights.
- Class Action Preparation: Shareholders who purchased Zillow securities may be entitled to compensation without any out-of-pocket costs through a contingency fee arrangement, indicating the firm's dedication to providing risk-free legal support for investors.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin for an unlawful agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, reflecting market concerns over its business practices.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its leadership position in the industry and strong support for investors.
See More
Zillow Group Q1 2026 Earnings Call Highlights
- Significant Revenue Growth: Zillow reported Q1 2026 revenue of $708 million, an 18% year-over-year increase, nearing the high end of its outlook, indicating strong performance and growth potential in the real estate market.
- EBITDA Exceeds Expectations: The company expects EBITDA between $150 million and $165 million, surpassing forecasts, reflecting effective strategies in cost control and legal expense management, which enhances confidence in future profitability.
- New Partnership Expansion: Zillow's collaboration with realtor.com significantly boosts the visibility of Preview listings, adding over 60 brokerages in just seven weeks, demonstrating proactive progress in market penetration and partner relationships.
- AI Mode Shows Early Promise: Zillow's new AI mode is live for about 5% of users, with encouraging initial feedback, suggesting potential improvements in user engagement and transaction efficiency, further solidifying Zillow's leadership in real estate technology.
See More
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- ARM Holdings Earnings Beat: ARM Holdings reported fourth-quarter adjusted earnings of 60 cents and revenue of $1.49 billion, surpassing analyst expectations of 58 cents and $1.47 billion, leading to a 6% stock increase, indicating strong market demand and growth potential.
- DoorDash Optimistic Guidance: DoorDash forecasts second-quarter marketplace gross order value between $32.4 billion and $33.4 billion, exceeding the $32.43 billion expected by analysts, with first-quarter earnings of 42 cents per share beating the anticipated 36 cents, resulting in a 14% stock surge, reflecting robust performance in a competitive delivery market.
- Zillow Revenue Miss: Zillow's first-quarter residential revenue of $450 million fell short of the $454.2 million estimate, causing shares to drop nearly 7%, despite overall performance exceeding expectations, which dampened market confidence in future growth.
- Fortinet Raises Guidance: Fortinet increased its full-year billings guidance to a range of $8.8 billion to $9.1 billion, up from the previous forecast of $8.4 billion to $8.6 billion, leading to a 16% stock increase, showcasing strong growth and confidence in the cybersecurity sector.
See More
