#1 - Zillow (NASDAQ:Z)
One reason investors believe we’re on the verge of a housing market revival comes from the recent earnings report from Zillow Group Inc. (NASDAQ: Z). Zillow is the number one U.S. residential real estate app. According to the company’s internal research, “70% of all home buyers and sellers use Zillow at some point in their transaction.”
The company generates revenue by providing advertising and related services to realtors. In the second quarter of 2024, it generated $572 million, 13% higher than Zillow’s own estimates. Drilling into the specifics, Zillow generated $34 million in revenue from its Mortgages business, a 42% year-over-year (YOY) increase. A key catalyst for this growth was a 125% YOY increase in purchase loan origination volume.
Z stock is down over 10% in 2024 but posted a 22% gain in the three months heading into earnings. The Zillow analyst forecast on MarketBeat suggests an 11% upside for Z stock. Much of that is due to expectations that Zillow will post positive earnings sometime in the next 12 months.
About Zillow Group
Zillow Group, Inc operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services.
Read More - Current Price
- $84.44
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 6 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $70.33 (16.7% Downside)
