Despite the housing market situation, Zillow continues to grow.
In 2021, Zillow exited the business of buying and selling homes with its own balance sheet. This allowed the company to de-lever the balance sheet (no more long-term debt) and become profitable in 2025 as a pure fee/licensing business model.
The next 4 years should deliver steady EPS growth, something the company has never had even when the EV (enterprise value = mkt cap+debt) was over $30B. Today, the EV is $7B.
Earnings estimates for 2026 have risen materially so far this year but the stock has continued to wither. Estimates (GAAP, not adjusted) were $0.50 in the middle of last year. Now they are over $0.80. Looking to 2029-2030, it is not hard to see $3 or more. Using adjusted EPS, I can see $5.00 by 2030.
(If you want to understand the difference between adjusted and GAAP EPS, I recommend asking an LLM, but the tl;dr version is GAAP are the real, accounting pure EPS while adjusted backs out non-cash expenses of certain kinds which make the numbers higher. )
The business is now the highest quality it has ever been, trading at almost the lowest EV in the company's history.