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
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: 33.260
Low
70.00
Averages
87.40
High
100.00
Current: 33.260
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.
Pandemic Boosts Million-Dollar Starter Homes to Record Highs
- City Count Surge: According to Zillow's analysis, the number of cities with million-dollar starter homes has nearly tripled since 2020, now totaling 242, indicating the pandemic housing boom's lasting impact on first-time buyers, despite the typical starter home being valued at $198,649 nationwide.
- Market Shifts: While affordability pressures have eased in some areas, the phenomenon of million-dollar starter homes persists, particularly in New York and New Jersey, which added 15 cities combined in the past year, highlighting the widespread nature of high home prices.
- Regional Disparities: California leads with 105 cities, yet states like Texas, Wyoming, and Illinois are now seeing multiple cities with million-dollar starter homes, indicating a shift from the previous coastal-only trend to a broader geographical spread.
- Buyer Tools: Zillow's BuyAbility℠ tool provides personalized, real-time estimates of home prices and monthly payments, assisting buyers in making informed decisions in a high-price environment, while also offering renters various options to enhance their future purchasing power.
See More
Class Action Lawsuit Filed Against Zillow Group, Inc.
- Class Action Initiation: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased Zillow Group's Class A or Class C common stock between February 11, 2025, and May 7, 2026, alleging that misleading statements during this period caused investor losses.
- Legal Risk Disclosure: The lawsuit claims that Zillow's agreement with Redfin was not a 'partnership' but an acquisition, which heightened Zillow's risk of regulatory scrutiny and antitrust liability, potentially impacting its future operations and market perception.
- Investor Compensation Opportunity: Investors participating in the class action may seek compensation without any out-of-pocket costs through a contingency fee arrangement, enhancing investor confidence in pursuing legal recourse against the company.
- Law Firm Credentials: Rosen Law Firm has a strong track record, having recovered over $438 million for investors in 2019 alone and being ranked first by ISS Securities Class Action Services in 2017, highlighting its expertise and success in securities class action litigation.
See More
Zillow Group Investors Class Action Notice
- Class Action Initiation: The Portnoy Law Firm advises Zillow Group investors of a class action for those who purchased securities between February 11, 2025, and March 7, 2026, with a deadline of August 10, 2026, for filing a lead plaintiff motion, highlighting the urgency of legal action.
- Legal Risk Disclosure: The lawsuit reveals that Zillow's agreement with Redfin was not a 'partnership' but an acquisition, resulting in increased regulatory scrutiny and antitrust liability, which could significantly impact the company's future operations.
- False Statement Allegations: The lawsuit claims that Zillow made false and/or misleading statements throughout the class period, failing to adequately disclose its legal risks, leading to investor losses when the truth emerged, indicating a lack of corporate governance and transparency.
- Investor Rights Protection: The Portnoy Law Firm offers complimentary case evaluations and encourages investors to contact attorneys to discuss options for recovering losses, demonstrating a commitment to protecting investor rights and the necessity of legal support.
See More
Zillow Group Securities Fraud Class Action Reminder
- Lawsuit Deadline: Zillow Group faces a securities fraud class action lawsuit with a deadline of August 10, 2026, requiring investors to submit necessary documents by this date to participate, as failure to act may result in forfeiting potential recovery.
- Investor Eligibility: The lawsuit targets investors who purchased or held Class A or Class C shares of Zillow between February 11, 2025, and May 7, 2026, alleging that the company and its executives made materially false statements regarding business operations and financial stability, leading to artificially inflated stock prices.
- Potential Losses: Investors reportedly suffered significant losses when the truth was revealed, indicating a severe impact on the company's market credibility, which could lead to further declines in stock prices as trust erodes.
- Legal Fee Arrangement: Bernstein Liebhard LLP offers risk-free legal representation, with all fees covered by the firm, ensuring that investors can participate in the lawsuit without incurring any costs, thereby lowering the barrier for investor participation.
See More
U.S. Mortgage Rates Continue to Decline
- 30-Year Fixed Rate Drop: According to Zillow data, the 30-year fixed mortgage rate fell by 5 basis points to 6.26%, which will reduce monthly payment burdens for homebuyers, potentially stimulating activity in the real estate market.
- 15-Year Fixed Rate Slight Decline: The 15-year fixed mortgage rate decreased by 1 basis point to 5.73%, which, although minimal, may still attract buyers looking to pay off loans quickly, thereby enhancing market demand.
- Adjustable Rate Loan Changes: The 5/1 ARM rate also dropped by 1 basis point to 6.30%, making monthly payments more appealing for short-term buyers, potentially leading to an increase in the selection of adjustable-rate loans to lower initial costs.
- Refinance Rate Trends: The 30-year fixed refinance rate remains at 6.26%, while the 15-year fixed refinance rate decreased to 5.68%, indicating a potential increase in demand for refinancing, especially in the context of declining rates.
See More
Zillow Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Zillow is facing a class action lawsuit for securities fraud due to an alleged anti-competitive agreement with Redfin, which caused its stock to plummet over 16% on February 10, 2026, significantly undermining investor confidence.
- Legal Allegations: The complaint asserts that Zillow's agreement with Redfin involved a $100 million payment to cease competition, which is claimed to violate Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, potentially exposing the company to substantial damages.
- Market Reaction: Following the FTC's antitrust complaint against Zillow and Redfin, Zillow's Class C and A common stocks fell by 4.33% and 4.5%, respectively, reflecting market concerns regarding the company's compliance and future profitability.
- Financial Impact: Zillow's CFO indicated that increased legal expenses would result in approximately 200 basis points headwind to EBITDA margins in Q1, further exacerbating investor worries about the company's financial health.
See More
Pandemic Boosts Million-Dollar Starter Homes to Record Highs
- City Count Surge: According to Zillow's analysis, the number of cities with million-dollar starter homes has nearly tripled since 2020, now totaling 242, indicating the pandemic housing boom's lasting impact on first-time buyers, despite the typical starter home being valued at $198,649 nationwide.
- Market Shifts: While affordability pressures have eased in some areas, the phenomenon of million-dollar starter homes persists, particularly in New York and New Jersey, which added 15 cities combined in the past year, highlighting the widespread nature of high home prices.
- Regional Disparities: California leads with 105 cities, yet states like Texas, Wyoming, and Illinois are now seeing multiple cities with million-dollar starter homes, indicating a shift from the previous coastal-only trend to a broader geographical spread.
- Buyer Tools: Zillow's BuyAbility℠ tool provides personalized, real-time estimates of home prices and monthly payments, assisting buyers in making informed decisions in a high-price environment, while also offering renters various options to enhance their future purchasing power.
See More
Class Action Lawsuit Filed Against Zillow Group, Inc.
- Class Action Initiation: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased Zillow Group's Class A or Class C common stock between February 11, 2025, and May 7, 2026, alleging that misleading statements during this period caused investor losses.
- Legal Risk Disclosure: The lawsuit claims that Zillow's agreement with Redfin was not a 'partnership' but an acquisition, which heightened Zillow's risk of regulatory scrutiny and antitrust liability, potentially impacting its future operations and market perception.
- Investor Compensation Opportunity: Investors participating in the class action may seek compensation without any out-of-pocket costs through a contingency fee arrangement, enhancing investor confidence in pursuing legal recourse against the company.
- Law Firm Credentials: Rosen Law Firm has a strong track record, having recovered over $438 million for investors in 2019 alone and being ranked first by ISS Securities Class Action Services in 2017, highlighting its expertise and success in securities class action litigation.
See More
Zillow Group Investors Class Action Notice
- Class Action Initiation: The Portnoy Law Firm advises Zillow Group investors of a class action for those who purchased securities between February 11, 2025, and March 7, 2026, with a deadline of August 10, 2026, for filing a lead plaintiff motion, highlighting the urgency of legal action.
- Legal Risk Disclosure: The lawsuit reveals that Zillow's agreement with Redfin was not a 'partnership' but an acquisition, resulting in increased regulatory scrutiny and antitrust liability, which could significantly impact the company's future operations.
- False Statement Allegations: The lawsuit claims that Zillow made false and/or misleading statements throughout the class period, failing to adequately disclose its legal risks, leading to investor losses when the truth emerged, indicating a lack of corporate governance and transparency.
- Investor Rights Protection: The Portnoy Law Firm offers complimentary case evaluations and encourages investors to contact attorneys to discuss options for recovering losses, demonstrating a commitment to protecting investor rights and the necessity of legal support.
See More
Zillow Group Securities Fraud Class Action Reminder
- Lawsuit Deadline: Zillow Group faces a securities fraud class action lawsuit with a deadline of August 10, 2026, requiring investors to submit necessary documents by this date to participate, as failure to act may result in forfeiting potential recovery.
- Investor Eligibility: The lawsuit targets investors who purchased or held Class A or Class C shares of Zillow between February 11, 2025, and May 7, 2026, alleging that the company and its executives made materially false statements regarding business operations and financial stability, leading to artificially inflated stock prices.
- Potential Losses: Investors reportedly suffered significant losses when the truth was revealed, indicating a severe impact on the company's market credibility, which could lead to further declines in stock prices as trust erodes.
- Legal Fee Arrangement: Bernstein Liebhard LLP offers risk-free legal representation, with all fees covered by the firm, ensuring that investors can participate in the lawsuit without incurring any costs, thereby lowering the barrier for investor participation.
See More
U.S. Mortgage Rates Continue to Decline
- 30-Year Fixed Rate Drop: According to Zillow data, the 30-year fixed mortgage rate fell by 5 basis points to 6.26%, which will reduce monthly payment burdens for homebuyers, potentially stimulating activity in the real estate market.
- 15-Year Fixed Rate Slight Decline: The 15-year fixed mortgage rate decreased by 1 basis point to 5.73%, which, although minimal, may still attract buyers looking to pay off loans quickly, thereby enhancing market demand.
- Adjustable Rate Loan Changes: The 5/1 ARM rate also dropped by 1 basis point to 6.30%, making monthly payments more appealing for short-term buyers, potentially leading to an increase in the selection of adjustable-rate loans to lower initial costs.
- Refinance Rate Trends: The 30-year fixed refinance rate remains at 6.26%, while the 15-year fixed refinance rate decreased to 5.68%, indicating a potential increase in demand for refinancing, especially in the context of declining rates.
See More
Zillow Faces Class Action Lawsuit for Securities Fraud
- Lawsuit Background: Zillow is facing a class action lawsuit for securities fraud due to an alleged anti-competitive agreement with Redfin, which caused its stock to plummet over 16% on February 10, 2026, significantly undermining investor confidence.
- Legal Allegations: The complaint asserts that Zillow's agreement with Redfin involved a $100 million payment to cease competition, which is claimed to violate Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, potentially exposing the company to substantial damages.
- Market Reaction: Following the FTC's antitrust complaint against Zillow and Redfin, Zillow's Class C and A common stocks fell by 4.33% and 4.5%, respectively, reflecting market concerns regarding the company's compliance and future profitability.
- Financial Impact: Zillow's CFO indicated that increased legal expenses would result in approximately 200 basis points headwind to EBITDA margins in Q1, further exacerbating investor worries about the company's financial health.
See More
