Zillow Group: Investors Should Be Patient And Focus On Long Term

Nov. 29, 2022 3:30 PM ETZillow Group, Inc. (Z), ZG6 Comments
Jay Capital profile picture
Jay Capital
276 Followers

Summary

  • ZG’s 3Q22 revenue and EBITDA beat on better-than-expected results from IMT, while Mortgage was largely in line.
  • Premier Agent revenue declined but was still higher than consensus estimates.
  • Current valuation is still attractive for patient investors that focus on FY25.

Entrance to 535 Mission street office building, San Francisco

Sundry Photography

Overview

This post serves as an update to my coverage in late September.

Zillow Group (NASDAQ:ZG) (NASDAQ:Z) is still undervalued and could provide attractive returns. I continue to believe that ZG's true value will be realized

Stock chart

ZG share price (Google)

Valuation

Author's estimates

This article was written by

Jay Capital profile picture
276 Followers
I take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to companies with steady long-term growth, no cyclicality, and a robust balance sheet.Nevertheless, investing in successful company is risky because one may end up paying too much (this is where valuation matters). I firmly believe this, yet there are situations where the development runway is so vast that price matters much less in the immediate future.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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