Shares of Zillow Group ZG have climbed 60.8% in the past six years compared with a growth of 3.9% for the industry. The company has a solid brand position in the residential real estate industry. It boasts 233 million average monthly unique users across the Zillow ecosystem of apps and sites. Earnings estimate for ZG has improved to $2.15 per share from $2.10 per share for 2025 over the past 90 days. Backed by strong fundamentals, this Zacks Rank #3 (Hold) stock appears primed for further appreciation.

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Growth Drivers

The company is witnessing solid momentum in rental revenues, driven by growth in both multi and single-family listings. Solid growth in Premier Agent Business is driving growth in the Residential vertical. Zillow’s advanced technology, such as its New Construction marketplace Real Time Touring and software solutions from ShowingTime+, is gaining strong popularity.

Zillow Group constantly adds new features to bolster the experience for property managers and consumers. Its Rental Inforum is aimed at making property managers better understand the preferences of consumers. Zillow Group offers the Zillow Group Home Capture App, which aims to bring 3D Homes imaging technology for sale and for rent listings. It is also placing a strong emphasis on developing AI-powered tools that will empower home shoppers with insights and guidance on home financing. It will also enable real estate agents to better connect and engage with more potential customers. This innovation will significantly enhance home buying and selling experiences, likely translating to healthy long-term growth for the company.

It is taking several measures to enhance transparency, equity and fair housing in the real estate market. The industry is witnessing a growing inclination toward the use of AI tools. However, many AI tools trained with biased data can perpetuate discrimination, undermining the principles of fair housing laws intended to ensure equal access to housing for all. To address this challenge, Zillow Group has introduced Fair Housing Classifier, an open-source technology that serves as a protective measure to foster more equitable conversations with AI technology.

Zillow Group expects improved affordability will drive higher home sales in 2025. The company also expects strong demand trends for single family rentals in the upcoming quarters.

ZG delivered an earnings surprise of 25.47%, on average, in the trailing four quarters. The company has an average brokerage recommendation (ABR) of 2 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and portends the future potential of the stock.

Key Picks

Keysight Technologies, Inc. KEYS carries a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.

It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Ubiquiti Inc. UI sports a Zacks Rank #1 at present. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth.

The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques.

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