Z Should I Buy
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Zillow Group Inc (Z) is not a strong buy at the moment for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The stock is currently in a bearish trend with no clear technical or proprietary trading signals to suggest a strong entry point. While the company's share buyback program is a positive catalyst, weak financial performance, mixed analyst ratings, and a lack of significant insider or hedge fund activity suggest a cautious approach. Holding off for a more favorable entry point is recommended.
The MACD is positive and expanding (0.894), suggesting bullish momentum, but the RSI is neutral at 49.692, indicating no clear signal. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is trading near its pivot level of 45.355, with support at 42.599 and resistance at 48.111. Overall, the technical indicators suggest a bearish trend.
The $1.25 billion stock buyback program reflects confidence in the company's future growth and aims to boost shareholder value.
Weak financial performance in Q4 2025, with net income dropping by -105.77% YoY and EPS declining by -104.55% YoY. Analyst ratings are mixed, with recent downgrades citing market structure uncertainties and litigation risks.
In Q4 2025, revenue increased by 18.05% YoY to $654 million, but net income dropped to $3 million (-105.77% YoY), EPS fell to 0.01 (-104.55% YoY), and gross margin declined to 72.78% (-4.00% YoY).
Analyst ratings are mixed. Keefe Bruyette recently lowered the price target to $60 from $65, maintaining a Market Perform rating. Benchmark raised the target to $110, citing strong momentum, while Mizuho downgraded the stock to Neutral, citing uncertainties in market structure and litigation risks.
