Zillow Group Inc Receives Mixed Rating From Value Investor Model

A recent report presents Zillow Group Inc as a mixed performer, with a 57% rating based on a value investment strategy. While it passes several key financial criteria, it fails on long-term earnings growth, P/E ratio, and price/book ratio, potentially impacting investor sentiment.

Date: 29-10-2024

AI Rating: 5

The report reviews Zillow Group Inc (Z) using the Value Investor strategy developed by Benjamin Graham. The stock rates a score of 57% based on fundamentals, signaling some value potential but also highlighting areas of concern.

Key analysis results are as follows:

Long-Term EPS Growth: FAIL - This indicates a significant lack of expected growth in earnings per share over time, which can discourage growth-oriented investors and negatively affect the stock price.
P/E Ratio: FAIL - A low or unfavorable P/E ratio suggests that investors are less willing to pay for each dollar of earnings, impacting market perception and competitiveness.
Price/Book Ratio: FAIL - A failure here further complicates the company’s valuation attractiveness compared to its actual book value.

Although Zillow Group passes tests for sales, current ratio, and long-term debt in relation to net current assets, these positive aspects may be overshadowed by the significant weaknesses concerning growth and valuation ratios. Potential investors may perceive these failures as red flags that could weigh on stock performance and market confidence.

Stocks: Z