Valued at a market cap of $29.3 billion, CoStar Group, Inc. (CSGP) provides information, analytics, and online marketplace services for the commercial real estate industry. The Arlington, Virginia-based company helps property owners, brokers, investors, and renters find listings, study market trends, compare prices, advertise properties, and make better real estate decisions.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and CSGP fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the real estate services industry. With a vast proprietary database, recurring subscription revenue, and continuous investment in research and technology, the company enables customers to make more informed real estate and investment decisions. Its scale, data accuracy, and dominant online marketplaces position it as a major player in the industry.
This real estate services provider has dipped 29.2% from its 52-week high of $97.43, reached on Aug. 5. Shares of CSGP have declined 21.4% over the past three months, considerably underperforming the Dow Jones Industrial Average’s ($DOWI) 5.8% rise during the same time frame.
In the longer term, CSGP has fallen 13.9% over the past 52 weeks, notably underperforming DOWI's 7.1% uptick over the same time period. Moreover, on a YTD basis, shares of CSGP are down 3.6%, compared to DOWI’s 12.6% return.
To confirm its bearish trend, CSGP has been trading below its 200-day moving average since early October and has remained below its 50-day moving average since early September.
On Oct. 28, CSGP reported better-than-expected Q3 results, yet its shares plunged 9.9% in the following trading session. The company delivered its 58th consecutive quarter of double-digit revenue growth. Its overall topline increased 20.4% year-over-year to $833.6 million, surpassing consensus estimates by 2.4%. Moreover, its adjusted EPS of $0.23 grew 4.5% from the year-ago quarter, handily topping analyst expectations of $0.19.
CSGP has also significantly trailed behind its rival, CBRE Group, Inc. (CBRE), which gained 18.3% over the past 52 weeks and 23.6% on a YTD basis.
Despite CSGP’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 18 analysts covering it, and the mean price target of $92.40 suggests a 33.9% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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