Is Zillow Stock Worth The Wait

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Zillow Group (Z) stock reached its highest close of the past ten years in February 2021, and shares continue to trade well below that level today. It is easy to measure Zillow against that old close, treating the former peak as where the stock belongs and the current price as a mere detour. So what would getting back to that price actually take?

Zillow Stock Needs A 512.8% Gain To Get Back

Zillow stock remains 83.7% below its February 2021 high, meaning shares need a 512.8% gain to fully recover. Even if that climb took three years, it would require an 83.0% annual return.

Has Zillow Gained 512.8% In Three Years Since 2016?

Zillow stock has not managed that feat once in the last ten years. That track record holds across every three-year stretch of 756 trading sessions since October 2016, with a new stretch starting on each trading day. While Zillow's business may still perform well from here, recovering that former price within three years would be a first for the stock in a decade of trading.

What Has Waiting Cost Zillow Holders?

Shareholders have now waited 5.7 years since the stock reached that peak. Over that period, Zillow shares fell 83.7% before dividends, while the S&P 500 rose 95.2%. Investors who held the stock lost twice over: once on the decline in the shares, and again by missing the advance in the broader market.

Is Zillow The Same Business It Was Then?

A comparison of the twelve months ending in June 2026 with the twelve months ending in December 2020 shows that Zillow's sales fell far less than its share price, while its profit increased.

Zillow currently generates revenue from homes for sale, via agent referrals and Zillow Home Loans, as well as from rentals. Management said that in fiscal Q2 2026, for-sale revenue grew 14% from a year earlier and rentals revenue grew 31%.

For the twelve months ending in June 2026, Zillow reported revenue 15.9% lower than in the twelve months ending in December 2020. Over the same span, its operating margin rose from 1.1% to 1.8%, and its twelve-month net loss turned into a profit. The company sells less than it did back then but earns more, so the business has not shrunk as much as the share price has.

The question worth asking about Zillow is not when the former share price will return, but whether 135.2 times its past twelve months of earnings is a fair price for the business it is today.

Does This Mean You Should Act On Z?

Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.

There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

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