CoStar Group, Inc. (CSGP), headquartered in Arlington, Virginia, provides information, analytics, and online marketplace services. Valued at $32.2 billion by market cap, the company offers a subscription-based integrated platform for commercial real estate intelligence, which includes information about commercial real estate properties, properties for sale, comparable sales, tenants, space available for lease, industry news, and market status.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CSGP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the real estate services industry. CSGP is a leader in the commercial real estate information arena, known for brands like CoStar Suite and LoopNet. Its strong brand recognition has helped maintain a loyal customer base and attract new subscribers, leading to steady revenue growth.
Despite its notable strength, CSGP slipped 19.7% from its 52-week high of $97.73, achieved on Mar. 22, 2024. Shares of CSGP gained 9.8% over the past three months, outperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 1.8% gains during the same time frame.
In the longer term, shares of CSGP rose 9.6% on a YTD basis, outperforming XLRE’s YTD gains of 2.1%. However, the stock fell 19.7% over the past 52 weeks, underperforming XLRE’s 6.2% returns over the last year.
To confirm the recent bullish trend, CSGP has been trading above its 200-day moving average since early February, experiencing some fluctuations. The stock is trading above its 50-day moving average since late January, with slight fluctuations.
CoStar encountered difficulties due to rising costs and macroeconomic pressures.
On Feb. 18, CSGP reported its Q4 results, and its shares closed up by 5% in the following trading session. Its EPS declined 37.5% year over year to $0.15. The company’s revenue was $709.4 million, surpassing Wall Street forecasts of $701 million. CSGP expects full-year revenue in the range of $2.99 billion to $3.02 billion.
In the competitive arena of real estate services, CBRE Group, Inc. (CBRE) has taken the lead over CSGP, showing resilience with a 32.3% uptick over the past 52 weeks but lagged behind the stock with a 1.2% dip on a YTD basis.
Wall Street analysts are moderately bullish on CSGP’s prospects. The stock has a consensus “Moderate Buy” rating from the 15 analysts covering it, and the mean price target of $85.69 suggests a potential upside of 9.2% from current price levels.
