With Zillow Stock Sliding, Have You Assessed The Risk?
Zillow (Z) stock is down 19.4% in 21 trading days. The recent slide reflects renewed concerns around broader real estate market challenges and revenue concerns, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn resilience, let’s look at where Zillow stands today.
- Size: Zillow is a $13 billion company with $2.5 billion in revenue currently trading at $54.97.
- Fundamentals: Last 12-month revenue growth of 15.2% and operating margin of -3.6%.
- Liquidity: Has a debt-to-equity ratio of 0.03 and a cash-to-assets ratio of 0.24
- Valuation: Zillow stock is currently trading at P/E multiple of -416.3 and P/EBIT multiple of -1665.1
- Has returned (median) 36.6% within a year following sharp dips since 2010. See Z Dip Buy Analysis.
These metrics point to a moderate operational performance, alongside Very High valuation – making the stock unattractive. For details, see Buy or Sell Z Stock
That brings us to the key consideration for investors worried about this fall: how resilient is Z stock if markets turn south? This is where our downturn resilience framework comes in. Suppose Z stock falls another 20-30% to $38—can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- Z stock fell 86.5% from a high of $199.90 on 16 February 2021 to $26.97 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $90.32 on 17 September 2025 , and currently trades at $54.97
| Z | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -86.5% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- Z stock fell 61.5% from a high of $65.00 on 21 February 2020 to $25.01 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 July 2020
| Z | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -61.5% | -33.9% |
| Time to Full Recovery | 124 days | 148 days |
2018 Correction
- Z stock fell 58.6% from a high of $65.57 on 15 June 2018 to $27.16 on 19 November 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 July 2020
| Z | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.6% | -19.8% |
| Time to Full Recovery | 609 days | 120 days |
Feeling jittery about Z stock? Consider a portfolio approach.
Portfolios Beat Stock Picking
Individual stocks can soar or tank, but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside, and mitigate the downside associated with any individual stock.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.