Shares of real estate stocks seem to be on thin ice right now, but there are signs of a potential recovery coming first to those at the top of the value chain. While real estate investment trusts (REITs) see their prices underperform the S&P 500, investors will be surprised to see that they will be among the last to see a recovery.
The heavy selling pressure might have exhausted for Zillow (Z) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
Zillow's adjusted EBITDA margin is expected to expand to 23% this year and potentially reach 25% by 2025. Assuming a 12% topline growth next year, Zillow's EBITDA could hit $650 million, making its stock priced at 22x forward EBITDA. This valuation presents a fair entry point for new investors, though it's not the most attractive investment currently available.
In a bid to help real estate agents make their online listings more appealing, Zillow Group announced the acquisition of Virtual Staging AI, a startup founded last year that uses AI to create virtual furniture and decorations.
First Street just launched a suite of climate risk data for every for-sale property listed on Zillow. Each for-sale listing on Zillow now displays First Street risk scores for flood, fire, wind, air and heat.
Lower interest rates gave a boost to the real estate platform.
The housing market could be in for a recovery, and this is one of the biggest beneficiaries.
Investors are betting that a big Fed rate-cutting cycle will lower costs for homebuyers and loosen up the real estate market. Zillow would benefit from growing home sales volumes.
Orphe Divounguy, Zillow, joins 'Fast Money' to talk the impact of rate cuts on housing affordability.
Real estate brokers and online real estate marketplace stocks are surging in anticipation of the Federal Reserve interest rate cut cycle commencing, and investors are paying attention.
Zillow Group, Inc. Z shares are trading higher after Wedbush upgraded the stock from Neutral to Outperform and raised its price target from $50 to $80.
Zillow Group (Z) is well positioned to benefit from lower U.S. mortgage rates, Wedbush analysts said Monday.