Should I Buy ZG? ZG 2026 Analysis

Should You Buy Zillow Group Inc (ZG) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

65.210

1 Day change

0.32%

52 Week Range

90.220

Analysis Updated At

2026/01/26

Zillow Group Inc (ZG) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows revenue growth and strategic progress, the financial performance is weak, with declining net income and EPS. The technical indicators and options sentiment do not suggest a strong entry point currently. Analysts have lowered price targets, and there are no significant positive catalysts or influential trading activity to drive immediate upside.

Technical Analysis

The MACD is slightly positive and expanding, indicating mild bullish momentum. However, the RSI is neutral at 53.143, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 67.165, with resistance at 70.08 and support at 64.251. Overall, the technical setup does not strongly favor a buy.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

The low open interest put-call ratio suggests bullish sentiment, but the high option volume put-call ratio of 2.33 indicates bearish short-term sentiment. Implied volatility is at 47.37, with an IV percentile of 61.11, suggesting moderately elevated volatility.

Technical Summary

Sell

Buy

Positive Catalysts

Revenue growth of 16.35% YoY in Q3 2025 and strategic initiatives in Residential and Rentals segments show potential for long-term growth. Analysts acknowledge progress despite a challenging housing market.

Neutral/Negative Catalysts

Gross margin also decreased by 4.31%. Analysts have lowered price targets, and there is no recent news or significant trading activity to drive immediate upside.

Financial Performance

In Q3 2025, revenue increased by 16.35% YoY to $676M. However, net income dropped to $10M (-150% YoY), and EPS fell to 0.04 (-144.44% YoY). Gross margin declined to 72.63% (-4.31% YoY), reflecting weaker profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have lowered price targets recently: Susquehanna to $80 (Neutral), UBS to $92 (Buy), and Piper Sandler to $85 (Overweight). Analysts highlight strategic progress but acknowledge a challenging macro environment and weaker profitability.

17 Analyst Rating

Wall Street analysts forecast ZG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZG is 85 USD with a low forecast of 66 USD and a high forecast of 100 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

9 Buy

7 Hold

1 Sell

Moderate Buy

Current: 65.000

Low

Averages

High

100

Current: 65.000

Low

Averages

High

100

Barclays

Trevor Young

Underweight -> Equal Weight

upgrade

$66 -> $72

AI Analysis

2026-01-29

New

Reason

Barclays

Trevor Young

Price Target

$66 -> $72

AI Analysis

2026-01-29

New

upgrade

Underweight -> Equal Weight

Reason

Barclays analyst Trevor Young upgraded Zillow Group to Equal Weight from Underweight with a price target of $72, up from $66. The residential backdrop is "stable, but not yet inflecting," but Zillow can post mid-teens revenue growth and faster EBITDA, the analyst tells investors in a research note. The firm believes a lot of downside risks are priced into shares. Zillow's recent execution improves the stock's risk/reward, contends Barclays.

Wells Fargo

Equal weight

maintain

$73

2026-01-27

New

Reason

Wells Fargo

Price Target

$73

2026-01-27

New

maintain

Equal weight

Reason

Wells Fargo notes that pre-market open, Reuters reported Third Point plans to launch an activist campaign at CoStar Group (CSGP). Press reports indicate Third Point will push CSGP to wind down or sell Homes.com, a Zillow (ZG) residential competitor. Wells sees the news as positive for Zillow competition concerns. The firm has an Equal weight rating on Zillow with a price target of $73.

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ZG Should I Buy

ZG Should I Buy

Should You Buy Zillow Group Inc (ZG) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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