Zillow Group Inc. (ZG:NSD) Analysts rate with a Buy, $80 target

STA Research
by: STA Research

According to 19 analyst forecasts for Zillow Group Inc., the average analyst target price for Zillow Group Inc. over the next 12 months is USD 80.60. The average analyst recommendation for Zillow Group Inc. is Buy. Zillow Group Inc.’s stock analysis by Stock Target Advisor is Slightly Bearish, based on four positive signals and six negative signals. Zillow Group Inc.’s stock price was USD 38.52 at the time of the most recent close. The stock price of Zillow Group Inc. has decreased by -8.09 percent in the last week, -12.33 percent in the last month, and -72.83 percent in the last year.

RBC Royalbank just maintained their Outperform rating on the stock, and cut the target to $65 from $70.

Zillow Group, Inc., a digital real estate company based in the United States, operates real estate brands through mobile applications and websites. The company operates in three segments: residential; internet, media, and technology; and mortgages. Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East are among the company’s brands. The corporation was founded in 2004 and is based in Seattle, Washington.

What we enjoy:

Market capitalization is high.

This company is one of the largest in its sector and ranks in the top quartile. Such companies tend to be more stable.

Outperformance in terms of risk-adjusted returns

This stock has outperformed its sector peers on a risk-adjusted basis (over a 12-month holding period) and is in the top quartile.

Free cash flow that is positive

In the most recent four quarters, the company generated positive total free cash flow.

Exceptional Revenue Growth

In comparison to its sector, this stock has experienced top-quartile revenue growth over the last five years.

 

What we do not approve of:

Volatility is high.

Over the last five years, this company’s total returns have been volatile and above the sector median. Ascertain that you have the necessary risk tolerance before investing in such a stock.

Excessively expensive in comparison to earnings

On a price-to-earnings basis, the stock is trading above its peers and above the sector median.

Extremely leveraged

On a debt-to-equity ratio basis, the company is in the bottom half of its sector peers and is highly leveraged. However, keep an eye on the news and the company’s sector and financial statements. Occasionally, this figure is high due to the company’s aggressive growth strategy.

Cash flow deficit

In the most recent four quarters, the company generated negative total cash flow.

On a free cash flow basis, it is overpriced.

The stock is trading at a premium to its peers in terms of price to free cash flow. It is valued above the sector median. Proceed cautiously if you’re considering purchasing.

Earnings Growth Is Slow

In comparison to its sector, this stock has grown at a slower rate than the median over the last five years.

 

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