CoStar Group Sees Mixed Performance Amid Market Pressures
CoStar Group, Inc. (CSGP), based in Arlington, Virginia, specializes in information, analytics, and online marketplace services. With a market capitalization of $32.2 billion, the firm provides a subscription-based integrated platform that delivers commercial real estate intelligence. This platform encompasses a wide range of information, including property listings, comparable sales, occupancy options, industry news, and market trends.
CSGP is classified as a large-cap stock, with its valuation exceeding $10 billion. This status highlights its significant presence and influence within the real estate services sector. Notable brands from CSGP include CoStar Suite and LoopNet. The company’s recognized brand identity has fostered a loyal customer base and attracted new subscribers, contributing to consistent revenue growth.
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Despite its strong market position, CSGP’s stock fell 19.7% from its 52-week high of $97.73, reached on March 22, 2024. However, shares did rise 9.8% over the last three months, outperforming the Real Estate Select Sector SPDR Fund (XLRE), which gained only 1.8% during the same period.
Looking at the year-to-date performance, CSGP shares increased by 9.6%, surpassing the XLRE’s YTD growth of 2.1%. Nevertheless, over the past year, CSGP’s stock experienced a 19.7% decline, which is considerably below XLRE’s 6.2% returns.
In recent trading sessions, CSGP has maintained a position above its 200-day moving average since early February, although it has experienced some market fluctuations. The stock has also been trading above its 50-day moving average since late January, again with slight variations.
CoStar has been challenged by rising costs and broader macroeconomic pressures.
On February 18, CSGP released its Q4 results, prompting a 5% increase in share price during the following trading session. The company reported earnings per share (EPS) of $0.15, marking a 37.5% decline year over year. Nevertheless, its revenue reached $709.4 million, exceeding Wall Street’s forecast of $701 million. For the full year, CSGP anticipates revenue between $2.99 billion and $3.02 billion.
In the competitive landscape of real estate services, CBRE Group, Inc. (CBRE) has outperformed CSGP with a 32.3% increase over the past year, although it has underperformed in the year-to-date period with a 1.2% decrease.
Wall Street analysts have a moderately bullish outlook on CSGP, assigning it a consensus “Moderate Buy” rating based on data from 15 analysts. The average price target of $85.69 suggests a potential upside of 9.2% from the current levels.
On the date of publication, Neha Panjwani did not hold (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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