ZG Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
ZG is NOT a good buy right now for an impatient buyer. The stock just broke down hard (-4.55% regular session) and the technical trend remains bearish (SMA_200 > SMA_20 > SMA_5 with a negatively expanding MACD). While RSI_6 (~26) suggests the stock is near-term oversold and could bounce around support, there is no Intellectia buy signal to prioritize and the options tape shows heavy put volume (short-term caution).
Intellectia Proprietary Trading Signals
Given the current downtrend plus an upcoming earnings event (2026-02-10 after hours), the risk/reward is not compelling enough to call this a buy right now.
Trend is bearish and momentum is weakening. Moving averages are stacked bearishly (SMA_200 > SMA_20 > SMA_5), indicating an established downtrend. MACD histogram is -0.265 and negatively expanding, suggesting downside momentum is still building rather than stabilizing. RSI_6 at ~26 signals near-term oversold conditions (bounce potential), but oversold can persist in strong downtrends.
Key levels: Price (~62.15) is below the pivot (65.764) and sitting near S1 (62.823); next support is S2 (61.006). A clean reclaim of the pivot area would be needed to shift near-term bias back to bullish; otherwise, rallies are technically more likely to be sold into resistance (65.8 then 68.7). Pattern-based projection cited: ~60% chance of -0.14% next day, +2.21% next week, +4.01% next month—modest upside longer than 1 day, but not strong enough to override the current bearish tape.
Competitive landscape catalyst: Reports that Third Point may push CoStar to wind down/sell Homes.com (a Zillow competitor) is viewed as positive for Zillow’s competitive concerns.
Analyst tone improving at the margin: Barclays upgraded ZG to Equal Weight and raised PT to $72, arguing downside risks are largely priced and execution has improved.
Earnings catalyst (2026-02-10 after hours): If guidance/monetization trends surprise positively, the stock could rebound quickly from oversold levels.
Technical damage / momentum: Strong bearish trend with expanding negative MACD after a sharp down day increases the odds of further downside or failed bounces.
Earnings risk (2026-02-10): Event-driven volatility is elevated; disappointment could push price through support (~61).
Profitability deterioration in the latest reported quarter: Net income and EPS fell sharply YoY and gross margin declined, which can cap multiple expansion.
Options flow: Put volume dominating (put/call volume 2.
indicates near-term caution/hedging pressure.
Latest quarter: 2025/Q3. Revenue grew to $676M (+16.35% YoY), showing continued top-line expansion. However, profitability weakened materially: net income fell to $10M (-150% YoY) and EPS to $0.04 (-144.44% YoY), alongside gross margin slipping to 72.63% (-4.31% YoY). In short: solid revenue growth, but deteriorating earnings/margins—investors will likely demand evidence that margin pressure is temporary and operating leverage is re-accelerating.
Recent Street trend is modestly improving but still largely cautious/neutral.
Wall Street pros: improving execution, potential competitive relief, mid-teens revenue growth potential. Cons: housing macro uncertainty, recent margin/profitability deterioration, and neutral ratings suggest limited conviction for aggressive buying at current levels.
Influential/political trading check: No recent congress trading data available in the last 90 days; hedge fund and insider trends are reported as neutral with no significant recent activity.
