$Z (Zillow Group Inc. Class C Capital Stock) just saw its ACCE composite score climb 12 points, from 54 to 66 out of 100. That's a meaningful single move — most score changes are incremental — and it puts Zillow into solidly positive territory on our composite model.
The score breakdown as it stands: Growth 88, Value 52, Quality 59. The Growth subscore at 88 is the standout. Zillow's trailing year-over-year revenue is up 18.4%, and earnings growth came in at 533.3% year-over-year. That kind of earnings acceleration — even off a low base — is exactly what pushes a Growth subscore toward the top of the range. A 12-point composite jump of this size almost always has a Growth catalyst at its core, and the data confirms that.
The 6-model fair value estimate sits at $37.06, which implies +21.3% upside from the current price of $30.56. The consensus analyst target is $60.50, which is a much wider gap — but our model-based figure is the more conservative and systematic read. Both point in the same direction.
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Rentabilidad de los índices, repaso de las selecciones y los mayores cambios de puntuación, cada domingo. Sin relleno.
What it means
A score move of +12 typically reflects a shift in more than one subscore. Here, the most likely driver is the earnings growth figure feeding into the Growth model, but the Value subscore at 52 and Quality at 59 tell a more complicated story.
The trailing P/E of 121.2 looks stretched on the surface. The forward P/E of 14.3 is a very different picture — it signals that the market expects earnings to scale sharply from here. That gap between trailing and forward multiples is one reason the Value subscore sits in the middle of the range rather than at the bottom. Zillow is not cheap on a backward-looking basis, but the forward earnings picture is doing real work.
On quality, the numbers are modest. ROE is 1.3%, net margin is 2.3%, and FCF yield is 3.2%. None of those are high-quality business metrics in isolation. The one positive flag is that earnings quality is rated strong in the model, which means the reported earnings are well-supported by cash flow — that matters when net margins are thin.
The 1-year return of -55.2% is the number that demands context. Zillow has lost more than half its value over the past year, which is part of why the Value subscore isn't lower — the price has already absorbed a lot of bad news. Score moves like this one sometimes follow sharp drawdowns, when improving fundamentals start to catch up with a depressed price.
The cautious read: a score of 66 is a positive signal, not a green light. Quality metrics need to improve for this to be a durable move. Watch net margin and ROE in coming quarters. For the current price and full score breakdown, visit acceinvestments.com/stocks/Z.
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