CoStar Group, Inc. (CSGP), headquartered in Washington, D.C., is a leading provider of commercial real estate information, analytics, and online marketplaces, serving clients globally. With a market cap of $32.21 billion, CoStar is at the forefront of the real estate sector, offering mission-critical data and technology solutions that empower clients to make informed decisions in property markets.
Companies valued at $10 billion or more are generally classified as "large-cap stocks," and CoStar Group rightly fits into this category as a dominant player in the commercial real estate sector.
CSGP shares are trading 21.4% below their 52-week high of $100.38, which they hit on Mar. 18. Also, the stock has gained 4.9% over the past three months, significantly underperforming the Dow Jones Industrial Average Index’s ($DOWI) 7.1% returns over the same time frame.
In the longer term, CSGP is down 9.8% on a YTD basis, and the shares have declined 2.7% over the past 52 weeks. The Dow has gained 9.8% in 2024 and 19.7% over the past year.
To confirm its bearish price trend, CSGP has been trading below its 200-day moving average since late May. However, it is trading above the 50-day moving average since mid-August.
On Jul. 23, CoStar Group reported its Q2 earnings, and its stock rose 2% in the following trading session. Its adjusted earnings were 15 cents per share, surpassing Wall Street's expectation of 9 cents per share. The company's revenue was $677.8 million, slightly above forecasts. For the full year, the company anticipates earnings of 64 cents per share to 66 cents per share.
Highlighting the contrast in performance, rival CBRE Group, Inc. (CBRE) has outperformed CSGP and the border index, with a 50.1% gain over the 52 weeks.
Despite CSGP's recent underperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 13 analysts in coverage. The mean price target is $94.58, which suggests a premium of 19.9% to its current levels.
On the date of publication, Rashmi Kumari 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.
