Zillow (ZG, $110.30) crushes Q2 earnings expectations
Zillow earnings rebounded to positive territory from the year-ago quarter’s loss.
In the second quarter, the online real estate service company’s earnings came in at 4 cents a share, compared to a loss of -38 cents a share in the year-ago period. After adjusting for stock-based compensation and other costs, the earnings were 44 cents a share, vs. an adjusted loss of -17 cents a share in the year-ago quarter. Analysts polled by FactSet expected adjusted earnings of 24 cents a share.
Revenue surged +70% year-over-year to $1.31 billion in the quarter, surpassing analysts’ estimate of $1.28 billion. Zillow’s revenue from the Internet, Media & Technology segment came in at $476.1 million (vs. $280 million a year ago, and compared to analysts’ expected $467 million); revenue from for its core Premier Agent offering for professionals was $348.8 million (vs. $192 million a year-ago, and compared to analysts’ expected $345 million).
The company’s revenue from its Homes segment was $777.1 million (vs. $454.3 million in the same quarter last year, and $751 million expected by analysts polled by Factset). The Mortgages segment had sales of $56.7 million (vs. $33.8 million, and $62 million expected by analysts).
For the third quarter, Zillow has projected revenue in the range of $1.93 billion to $2.05 billion, well above analysts' estimate of $1.45 billion (based on FactSet poll). The biggest contributor to the difference between analysts’ estimates and Zillow’s forecast was expected growth in Zillow Offers: Zillow’s forecast for the Home business far exceeded analysts’ $900 million expectation for the segment.
ZG's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for ZG turned positive on January 16, 2025. Looking at past instances where ZG's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 15, 2025. You may want to consider a long position or call options on ZG as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
ZG moved above its 50-day moving average on January 17, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ZG crossed bullishly above the 50-day moving average on January 28, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZG advanced for three days, in of 315 cases, the price rose further within the following month. The odds of a continued upward trend are .
ZG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for ZG moved out of overbought territory on January 31, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ZG entered a downward trend on January 22, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ZG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.445) is normal, around the industry mean (11.425). P/E Ratio (128.205) is within average values for comparable stocks, (48.888). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.441). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (5.692) is also within normal values, averaging (19.296).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a real estate app
Industry InternetSoftwareServices