Zillow Group Inc. Receives Mixed Ratings from Analysts

Zillow Group Inc. shows a 57% rating based on Validea's Value Investor model. While the stock passes several criteria, it fails in areas such as long-term EPS growth and valuation ratios, indicating potential concerns for investors.

Date: 03-02-2025

AI Rating: 5

Stock Rating Overview
Zillow Group Inc. received a 57% rating from the Value Investor model based on the principles of Benjamin Graham, which emphasizes low P/B and P/E ratios, minimal debt, and long-term earnings growth. A rating that falls below 80% suggests a lack of strong interest in the stock.

Key Areas of Concern
The failure in Long-Term EPS Growth indicates potential issues with the company's ability to increase its earnings over time, which is a significant factor for growth-oriented investors. Investors generally look for consistent earnings growth as an indicator of future performance.

Valuation Ratios
Additionally, Zillow's P/E Ratio and Price/Book Ratio both marked as failures signal valuation concerns. High P/E and P/B ratios can mean that the stock is overvalued compared to its earnings and book value, which could deter potential investors looking for more reasonably priced stocks.

Passes on Other Criteria
Despite these concerns, Zillow has passed on several criteria including Sector, Sales, Current Ratio, and Long-Term Debt to Net Current Assets. This demonstrates that there are also strong fundamentals that could provide some level of confidence among investors.

Overall, while Zillow Group Inc. has passed several basic fundamental checks, the critical failures in earnings growth and valuation ratios might affect investor sentiment negatively, thus impacting the stock price.

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