CoStar Group: A Mixed Bag of Performance in 2023
Market Position and Recent Performance
Washington, D.C.-based CoStar Group, Inc. (CSGP) stands out as a major provider of commercial real estate information, analytics, and online marketplaces. With a market capitalization of $30.4 billion, it offers an extensive array of data, insights, and digital tools that serve real estate professionals, investors, and property managers. Its popular platforms include CoStar, LoopNet, Apartments.com, and Ten-X, each addressing different areas of the real estate sector.
Stock Performance Analysis
Over the past 52 weeks, CoStar shares have struggled compared to the broader market. CSGP has seen a decline of 7.3%, while the S&P 500 Index ($SPX) recorded a positive return of 22.5%. Interestingly, in the current year, CSGP shares increased by 5.4%, outpacing the SPX’s gain of 4.2% year-to-date.
Additionally, CSGP has not kept pace with the US Real Estate iShares ETF (IYR), which has registered a return of 10.6% over the same 52-week period.
Quarterly Earnings Report
In its Q4 earnings report released on February 18, CoStar’s shares rose by 1.9%. The company announced adjusted earnings of $0.26 per share, beating analysts’ expectations of $0.22. Revenue for the quarter hit $709.4 million, exceeding the projected $701 million. Looking ahead, the company forecasts Q1 revenue between $711 million and $716 million, and full-year revenue expected to range from $2.99 billion to $3.02 billion.
Future Outlook and Analyst Ratings
For the full year 2024, analysts anticipate a significant decline in CoStar’s earnings per share (EPS), projecting a 51.4% drop to $0.52 compared to the previous year. However, the company has a strong history of exceeding earnings expectations, having done so in each of the last four quarters.
Currently, the consensus rating among the 13 analysts following CSGP stock is a “Moderate Buy.” This is based on seven “Strong Buy” ratings, two “Moderate Buy” ratings, three “Hold” ratings, and one “Strong Sell” rating.
Analyst Insights
On February 1, Stephens & Co. analyst John Campbell maintained an “Overweight” rating for CoStar Group, with a price target of $103, the highest on Wall Street. The average price target for CSGP stands at $88.50, indicating a potential upside of 17.3%.
On the date of publication, Kritika Sarmah 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 for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
