Zillow Group (NASDAQ:ZG) delivers shareholders a favorable 10% CAGR over 5 years, rising 3.0% in the last week alone

The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Zillow Group, Inc. (NASDAQ:ZG) share price is up 64% in the last five years, that’s less than the market return. However, some buyers are laughing at a 28% increase in the last year.

On the back of a solid 7-day performance, let’s check what role the company’s fundamentals have played in driving long-term shareholder returns.

See our latest analysis for Zillow Group

Since Zillow Group has not made a profit in the last twelve months, we will focus on revenue growth to form a quick overview of the company’s development. When a company does not make a profit, we generally hope for good revenue growth. Some companies are willing to delay profitability in order to grow revenue faster, but in that case one would hope for good top line growth to compensate for the lack of earnings.

Over the past half-decade, Zillow Group’s revenue has actually declined by about 10% per year. The stock only rises 10% for each year during the period. It’s probably not bad considering the weak turnover and loss-making position. Of course, a closer look at the bottom line—and any available analyst forecasts—may reveal an opportunity (if they point to future growth).

The graphic below shows how earnings and revenue have changed over time (reveal the exact values ​​by clicking on the image).

Zillow Group is well known to investors and plenty of smart analysts have tried to predict the future profit levels. Since we have a good number of analyst forecasts, it might be worth checking this out free chart showing consensus estimates.

Zillow Group delivered a TSR of 28% during the year. That’s pretty close to the broader market return. That return looks pretty satisfying, and it’s even better than the five-year TSR of 10% per year. It is possible that management’s foresight will bring growth well into the future, even if the share price declines. If you would like to investigate Zillow Group in more detail, you may want to do so take a look at whether insiders have bought or sold shares in the company.

of course, you can find a great investment by looking elsewhere. So take a look at this free list of companies we expect to increase earnings.

Please note that the market returns provided in this article reflect the market weighted average returns of stocks currently trading on US exchanges.

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This article by Simply Wall St is of a general nature. We only provide commentary based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account recent price-sensitive company announcements or qualitative material. Simply Wall St has no position in any listed stocks.