Zillow’s stock earns a neutral rating upgrade as its valuation captures deeply oversold conditions, even with lingering fundamental challenges. Strong growth in rentals and mortgage segments, up around 40%, counters weakness in Premier Agent revenue and accounts for more than a quarter of total revenue.
Revenue Shifts Bolster Resilience
Rentals and mortgage operations expand rapidly at approximately 40% growth rates. These segments now offset softness in Premier Agent performance and contribute over 25% to Zillow’s overall revenue stream. Industry-leading website traffic supports long-term stability amid market pressures.
Persistent Risks Limit Upside
Legal hurdles and a sluggish housing market recovery pose major obstacles. These factors cloud near-term prospects and cap potential gains, demanding caution from investors.
Balanced Valuation Picture
With a market capitalization of $10.54 billion and a 12.4x FY26 EV/EBITDA multiple, Zillow appears neither deeply undervalued nor overpriced. This positioning reflects current dynamics without signaling a clear bargain.
Challenging Market Environment
Investors face volatile conditions in 2026, with underperforming stocks experiencing sharp further drops. Rebound opportunities prove scarce, particularly for tech-related names entering the year on shaky footing.
