Analyst: Zillow Will Recover Alongside the Housing Market

The analyst is betting on "rapid recovery" in the housing market

Deputy Editor
Feb 13, 2023 at 9:26 AM
facebook X logo linkedin


Zillow Group Inc (NASDAQ:ZG) is trading at $44.24 premarket, adding 4.8% following a bull note from Evercore ISI.

Specifically, the brokerage upgraded ZG to "outperform" from "in line" and raised nearly doubled its target price to $61, saying the shares could add 40% on a "rapid recovery" in the housing market. "We are in significant part making a macro call here -- that the housing market is either already beginning to recover or will very soon do that," Evercore said according to CNBC.

Zillow's upcoming earnings report will certainly shed some light on the situation. The online real estate brokerage is set to report earnings after the close on Wednesday, Feb. 15. The equity tends to dip following trips to the earnings confessional, finishing five of its last eight post-earnings sessions lower. Regardless of direction, Zillow stock swung 10.3% over the last eight quarters; this time around, the options pits are pricing in a slightly larger move of 12.4%.

Analysts are relatively split towards ZG, leaving plenty of room on the bullish bandwagon. Coming into today, 10 of the 18 covering brokerages recommended a "hold" or worse. The 12-month average target price of $42.23, meanwhile, is a razor-thin premium to Friday's close.

On the charts, ZG is poised to open above the $44 level -- an area that it's managed to trade above briefly earlier this month after nearly a year below the level. The equity is also moving above a host of short- and long-term moving averages, and already stands 35% higher in 2023. 

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!