Stock of the Day

CoStar Group (CSGP)

$78.38

+$0.18 (+0.2%)

Market Cap: $33.33B

About CoStar Group

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America.

The company offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar Sales, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. It also provides Leasing, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. The company was founded in 1987 and is headquartered in Washington, the District of Columbia.

CoStar Group Bull Case

Here are some ways that investors could benefit from investing in CoStar Group, Inc.:

• The current stock price is around $73, which may present a buying opportunity for investors looking for value in the technology sector.
• CoStar Group, Inc. has a strong market capitalization of approximately $30.79 billion, indicating a solid position in the market and potential for growth.
• Recent institutional investments, including a significant stake purchase by 111 Capital, suggest confidence in the company's future performance.
• The company has initiated a stock buyback program, authorizing up to $500 million in share repurchases, which can signal that the leadership believes the stock is undervalued and can enhance shareholder value.
• Analysts have a consensus rating of "Moderate Buy" with an average target price of $87.54, indicating positive sentiment and potential for price appreciation.

CoStar Group Bear Case

Investors should be bearish about investing in CoStar Group, Inc. for these reasons:

• The stock has experienced fluctuations, with a recent decline of about 2.1%, which may raise concerns about short-term volatility.
• Despite a strong market position, the company has a high price-to-earnings (PE) ratio of over 200, which could indicate that the stock is overvalued relative to its earnings.
• Insider selling activity, such as the recent sale by the Chief Accounting Officer, may raise red flags about the company's internal confidence and future prospects.
• With 96.60% of the stock owned by institutional investors, there may be less room for retail investors to influence the stock's performance.
• Two analysts have rated the stock with a sell rating, which could suggest potential risks that investors should consider before investing.

Recent News

• Why CoStar Group Inc (CSGP) Is Set to Outperform the Market: Insights into Financial Growth and ... (gurufocus.com)
• BofA Resumes Coverage of CoStar Group (CSGP) Stock with Neutral Rating (insidermonkey.com)
• CoStar Group and Happening Technology End Dispute Amicably (businesswire.com)