Time To Buy The Dip In Zillow Stock?
Zillow (ZG) stock has fallen by 17.2% in less than a month, from $54.50 on 6th Feb, 2026 to $45.14 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, ZG stock passes basic quality checks. But the bad news is that historically, the median return for the 12-month period following sharp dips was -14%, with median peak return of 45%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
- Why Chevron Stock May Drop Soon
- Ralph Lauren Stock: A Compounding Engine Facing Its North American Test
- How Broadcom Ends Nvidia’s GPU Monopoly
- Is Royal Caribbean Stock A Trap Or A Missed Opportunity?
- Beyond Price Action: Does DG Offer Genuine Diversification?
- Kyndryl Stock: Strong Cash Flow Poised for a Re-Rating?
| Period | Past Median Return |
|---|---|
| 1M | -0.7% |
| 3M | -9.4% |
| 6M | -15.9% |
| 12M | -13.8% |
Historical Dip-Wise Details
ZG had 25 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 45% median peak return within 1 year of dip event
- 193 days is the median time to peak return after a dip event
- -36% median max drawdown within 1 year of dip event
| 30 Day Dip | ZG Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | ZG | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | -14% | 45% | -36% | 193 | ||||
| 2052026 | -21% | -1% | -16% | 1% | -20% | 1 | ||
| 10292025 | -21% | 5% | -34% | 7% | -38% | 35 | ||
| 4082025 | -20% | -16% | -24% | 45% | -28% | 162 | ||
| 4152024 | -24% | -1% | 45% | 101% | -9% | 301 | ||
| 10182023 | -22% | -3% | 56% | 66% | -13% | 337 | ||
| 9222022 | -22% | -11% | 45% | 81% | -12% | 320 | ||
| 3302022 | -21% | 3% | -15% | 2% | -47% | 5 | ||
| 1212022 | -22% | -6% | -14% | 29% | -46% | 25 | ||
| 11032021 | -30% | 6% | -51% | 4% | -59% | 1 | ||
| 8172021 | -21% | 3% | -62% | 11% | -70% | 73 | ||
| 5182021 | -23% | 1% | -63% | 13% | -68% | 42 | ||
| 3242021 | -23% | -0% | -60% | 12% | -66% | 15 | ||
| 3122020 | -26% | -24% | 346% | 480% | -33% | 341 | ||
| 8132019 | -23% | -1% | 109% | 119% | -35% | 360 | ||
| 8132018 | -21% | 4% | -27% | 7% | -43% | 331 | ||
| 1212016 | -21% | -10% | 82% | 94% | -17% | 193 | ||
| 11202015 | -24% | 4% | 34% | 51% | -36% | 255 | ||
| 8052015 | -22% | -1% | -46% | 5% | -76% | 1 | ||
| 4012015 | -22% | -2% | -75% | 6% | -82% | 26 | ||
| 10032014 | -22% | -1% | -74% | 11% | -78% | 138 | ||
| 10232013 | -20% | 4% | 35% | 100% | -11% | 278 | ||
| 11022012 | -20% | -3% | 124% | 177% | -36% | 306 | ||
| 6202012 | -22% | -0% | 61% | 88% | -30% | 321 | ||
| 11302011 | -22% | 2% | 25% | 106% | -3% | 295 | ||
| 10112011 | -21% | -1% | 44% | 76% | -18% | 345 | ||
Zillow Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 15.5% | Pass |
| Revenue Growth (3-Yr Avg) | 9.9% | Pass |
| Operating Cash Flow Margin (LTM) | 14.2% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 2.4 | |
| => Cash To Interest Expense Ratio | 71.9 |
Not sure if you can take a call on ZG stock? Consider portfolio approach
Portfolios Over Individual Stock Picks
Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.