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Zillow Group (NASDAQ:ZG) offers shareholders a favorable 5-year annual growth rate of 10% and is up 3.0% in the last week alone

Zillow Group (NASDAQ:ZG) offers shareholders a favorable 5-year annual growth rate of 10% and is up 3.0% in the last week alone

The main purpose of long-term investing is to make money. But beyond that, you probably want the price to rise more than the market average. Unfortunately for shareholders, while the Zillow Group, Inc. (NASDAQ:ZG) The stock price is up 64% in the last five years, less than the market return. However, some buyers are laughing at a 28% increase over the last year.

Let’s examine how the company’s fundamentals have played a role in driving long-term shareholder returns with a solid 7-day performance.

Check out our latest analysis for Zillow Group

Since Zillow Group didn’t make a profit in the last twelve months, we’ll focus on revenue growth to get a quick look at its business performance. Generally, when a company doesn’t make profits, we hope for good revenue growth. Some companies are willing to delay profitability in order to grow sales faster. In this case, however, one would hope for good sales growth to make up for the lack of income.

Over the past half-decade, Zillow Group’s revenue has actually declined by about 10% per year. The stock is up just 10% each year over that period. Given the weak income and the loss situation, that’s probably not a bad thing. Of course, a closer look at the bottom line – and any available analyst forecasts – could reveal an opportunity (if they indicate future growth).

The graphic below shows how earnings and revenue have changed over time (discover the exact values ​​by clicking on the image).

Profit and sales growth
NasdaqGS:ZG Earnings and Revenue Growth December 26, 2024

Zillow Group is well known among investors and many smart analysts have tried to predict future profit levels. Given that we have quite a few analyst forecasts, it might be worth taking a look at here free Chart showing consensus estimates.

Zillow Group delivered a TSR of 28% for the year. That’s pretty close to the broader market return. This growth looks quite satisfactory and is even better than the five-year TSR of 10% per year. It’s possible that management’s foresight will support growth well into the future, even if the stock price weakens. If you want to learn more about Zillow Group, you should take a look at whether insiders have been buying or selling shares in the company.

Naturally, You might find a fantastic investment if you look elsewhere. So take a look free List of companies we expect to grow earnings.

Please note that the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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