Zillow Group’s Remarkable Rise: Aiming for Continued Growth
Over the last six years, shares of Zillow Group (ZG) have surged by 60.8%, outpacing the industry growth of only 3.9%. With a strong brand reputation in the residential real estate sector, Zillow attracts an impressive 233 million average monthly unique users across its various platforms. Recently, earnings estimates for 2025 have improved, increasing from $2.10 to $2.15 per share over the last 90 days. Given its solid fundamentals, this stock, rated Zacks Rank #3 (Hold), may have further growth potential.
Image Source: Zacks Investment Research
What’s Fueling Their Growth?
Zillow is enjoying strong momentum in rental revenue, with notable increases in both multi-family and single-family listings. Growth in its Premier Agent Business is also contributing positively to the Residential vertical. Innovative technology, such as the New Construction marketplace and Real Time Touring, combined with software from ShowingTime+, has gained popularity among users.
To enhance the user experience for both property managers and consumers, Zillow continually rolls out new features. The Rental Inforum helps property managers understand consumer preferences better, while the Zillow Group Home Capture App incorporates 3D imaging technology for listings. Additionally, Zillow is focusing on developing AI-powered tools that can assist homebuyers with valuable insights and aid real estate agents in connecting with potential customers. These innovations are expected to significantly improve buying and selling experiences, which could translate into sustained growth for the company.
Moreover, Zillow is making strides to ensure transparency, equity, and fair housing within the real estate market. As the industry increasingly adopts AI technologies, concerns about biased data perpetuating discrimination have emerged. Zillow’s response includes the Fair Housing Classifier—an open-source tool designed to promote fairer conversations around AI technology.
The company predicts that an uptick in affordability will boost home sales in 2025. It also forecasts a positive trend for demand in single-family rentals in the quarters ahead.
ZG has consistently achieved earnings surprises, averaging 25.47% over the past four quarters. Currently, it holds an average brokerage recommendation score (ABR) of 2 on a scale from 1 (Strong Buy) to 5 (Strong Sell). This score reflects the consensus view from brokerage firms and indicates a promising outlook for the stock.
Top Competitors to Watch
Keysight Technologies, Inc. (KEYS) currently holds a Zacks Rank of 1 (Strong Buy). Last quarter, it reported an earnings surprise of 5.10%. The company is set to benefit from the increasing adoption of electronic content in vehicles and rising demand for driver-assistance systems worldwide.
InterDigital (IDCC) also holds a Zacks Rank of 1. It outperformed expectations with an earnings surprise of 114.47% last quarter. InterDigital is known for its advanced mobile technologies that support wireless communications across various networks.
Ubiquiti Inc. (UI) maintains a Zacks Rank of 1. With an earnings surprise of 20.9% last quarter, the company’s adaptable global business model positions it well for future challenges and growth opportunities.
Join Us for Exclusive Stock Insights
Really, it’s just $1.
Years ago, we surprised our members by offering a 30-day access pass to our stock picks for just $1. There’s no obligation to spend more than that.
Thousands took advantage of this offer while others hesitated, suspecting a catch. But our goal is simple: we want you to explore our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and others that closed 228 positions with significant gains in 2023 alone.
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
Zillow Group, Inc. (ZG) : Free Stock Analysis Report
Ubiquiti Inc. (UI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
