CoStar Group, Inc. (CSGP)
CoStar Group, Inc. provides critical information, analytics, and online marketplace services to the commercial real estate industry. With a comprehensive suite of tools, CoStar empowers professionals to make informed decisions in a dynamic market.
Company Overview
CoStar Group, Inc. dominates the commercial real estate information and marketing landscape, offering unparalleled data and online platforms that drive efficiency and transparency, making it a vital resource for professionals and a compelling investment in the digital transformation of the industry.
Investment Thesis
CoStar Group presents a compelling investment opportunity due to its dominant market position and diverse revenue streams. The company's comprehensive data and analytics platform, coupled with its online marketplaces, create a strong competitive advantage. While the current P/E ratio of 1040.03 is high, it reflects the market's expectation of future growth. Key value drivers include the continued expansion of its online marketplaces, such as Homes.com, and the increasing demand for real estate data and analytics. The company's high gross margin of 79.3% demonstrates its pricing power and efficient operations. Investors should consider CSGP for long-term growth potential in the evolving real estate landscape.
Key Highlights
- Market Cap of $21.31B reflects CoStar's significant presence and value in the real estate services sector.
- Gross Margin of 79.3% indicates strong pricing power and efficient cost management.
- Beta of 0.85 suggests lower volatility compared to the overall market, making it a relatively stable investment.
- CoStar's comprehensive data and analytics platform provides a competitive edge in the commercial real estate market.
- The company's diverse portfolio of online marketplaces, including Apartments.com and Homes.com, generates multiple revenue streams.
Competitors
Strengths
- Dominant market position in commercial real estate information.
- Comprehensive data and analytics platform.
- Diverse portfolio of online marketplaces.
- Strong brand recognition and reputation.
Weaknesses
- High valuation relative to earnings.
- Dependence on the real estate cycle.
- Potential for disruption from new technologies.
- Profit Margin of 0.7% indicates low profitability.
Catalysts
- Ongoing: Continued growth in online marketplaces, driven by increased adoption of digital solutions.
- Ongoing: Expansion into new geographic markets, particularly in Europe and Asia.
- Upcoming: Launch of new data analytics products and services.
- Ongoing: Integration of artificial intelligence and machine learning into existing platforms.
Risks
- Potential: Economic downturn and decline in real estate activity could reduce demand for CoStar's services.
- Potential: Increased competition from existing and new players could erode market share.
- Potential: Changes in regulations and policies could impact the real estate industry.
- Ongoing: Data security breaches and privacy concerns could damage CoStar's reputation.
Growth Opportunities
- Expansion of Homes.com: CoStar's Homes.com platform represents a significant growth opportunity in the residential real estate market. By investing in marketing and technology, CoStar can increase Homes.com's market share and compete with established players like Zillow. The residential real estate market is vast, with trillions of dollars in transaction volume annually, offering substantial revenue potential for CoStar. Timeline: Ongoing, with continuous investments in platform development and marketing.
- International Expansion: CoStar has the opportunity to expand its presence in international markets, particularly in Europe and Asia. By leveraging its existing data and technology, CoStar can enter new markets and capture a share of the global real estate services industry. The global real estate market is estimated to be worth trillions of dollars, offering significant growth potential. Timeline: Ongoing, with a focus on strategic acquisitions and partnerships.
- Enhancement of Data Analytics: CoStar can further enhance its data analytics capabilities to provide more insights to its customers. By investing in artificial intelligence and machine learning, CoStar can develop predictive models and offer personalized recommendations. The demand for advanced analytics is increasing as real estate professionals seek to gain a competitive edge. Timeline: Ongoing, with continuous investments in research and development.
- Integration of Ten-X Platform: CoStar can integrate the Ten-X online auction platform into its broader ecosystem to provide a seamless transaction experience for its customers. By leveraging Ten-X's technology and expertise, CoStar can facilitate online real estate auctions and generate additional revenue. The online auction market is growing as more real estate professionals embrace digital solutions. Timeline: Ongoing, with a focus on platform integration and marketing.
- Development of New Products and Services: CoStar can develop new products and services to address the evolving needs of the real estate industry. By investing in research and development, CoStar can create innovative solutions that differentiate it from its competitors. The real estate industry is constantly evolving, creating opportunities for new products and services. Timeline: Ongoing, with a focus on identifying unmet needs and developing innovative solutions.
Opportunities
- Expansion into new geographic markets.
- Development of new products and services.
- Integration of artificial intelligence and machine learning.
- Growth in the residential real estate market.
Threats
- Increased competition from existing and new players.
- Economic downturn and decline in real estate activity.
- Changes in regulations and policies.
- Data security breaches and privacy concerns.
Competitive Advantages
- Proprietary data and analytics on commercial real estate.
- Extensive network of online marketplaces.
- Strong brand recognition and reputation.
- High switching costs for customers who rely on CoStar's data and services.
About
Founded in 1987, CoStar Group, Inc. has evolved into a leading provider of information, analytics, and online marketplace services for the commercial real estate, hospitality, residential, and related industries. The company's flagship product, CoStar Property, offers an extensive inventory of commercial properties, including office, industrial, retail, multifamily, hospitality, student housing, and land. CoStar's services extend beyond property listings to include CoStar COMPS, a comprehensive database of comparable real estate sales transactions, and CoStar Market Analytics, which provides insights into market trends. CoStar also operates a network of online marketplaces, including ApartmentFinder.com, ForRent.com, and Homes.com, catering to the residential real estate sector. These platforms connect renters and buyers with properties, offering a range of search and advertising options. The acquisition of Ten-X further expanded CoStar's capabilities, providing an online auction platform for commercial real estate transactions. With a presence in the United States, Canada, Europe, the Asia Pacific, and Latin America, CoStar Group serves a diverse clientele of real estate professionals, investors, and property owners. The company is headquartered in Washington, D.C.
What They Do
- Provides commercial real estate information and analytics.
- Offers online marketplaces for commercial and residential properties.
- Facilitates online auctions for commercial real estate.
- Provides marketing solutions for apartment communities.
- Offers tools for lease administration and portfolio management.
- Provides data and analytics on comparable real estate sales transactions.
- Offers solutions for finding land for sale.
Business Model
- Subscription revenue from CoStar Property and other data services.
- Advertising revenue from online marketplaces like Apartments.com and Homes.com.
- Transaction fees from the Ten-X online auction platform.
- Software licensing fees from CoStar Real Estate Manager.
FAQ
What does CoStar Group, Inc. do?
CoStar Group, Inc. is a leading provider of information, analytics, and online marketplace services to the commercial real estate industry. The company offers a comprehensive suite of tools, including CoStar Property, CoStar COMPS, and CoStar Market Analytics, which provide real estate professionals with the data and insights they need to make informed decisions. CoStar also operates a network of online marketplaces, such as Apartments.com and Homes.com, which connect renters and buyers with properties. The company's services are used by a wide range of customers, including brokers, property owners, and investors.
Is CSGP stock a good buy?
CSGP stock presents a mixed picture for investors. While the company has a dominant market position and strong growth potential, its high P/E ratio of 1040.03 raises valuation concerns. The company's high gross margin of 79.3% and diverse revenue streams are positive factors. Investors should consider their risk tolerance and investment horizon before investing in CSGP. A potential investor should closely monitor the company's growth in online marketplaces and its ability to maintain its competitive advantage in the face of increasing competition.
What are the main risks for CSGP?
The main risks for CSGP include an economic downturn and decline in real estate activity, which could reduce demand for its services. Increased competition from existing and new players could erode market share. Changes in regulations and policies could impact the real estate industry. Data security breaches and privacy concerns could damage CoStar's reputation. The company's high valuation also presents a risk, as any negative news could lead to a significant decline in the stock price. Investors should carefully consider these risks before investing in CSGP.
Industry Context
CoStar Group operates in the real estate services industry, which is undergoing a digital transformation. The demand for real estate data, analytics, and online marketplaces is increasing as professionals seek to make informed decisions and streamline transactions. The industry is competitive, with players like CBRE and other real estate service providers vying for market share. CoStar differentiates itself through its comprehensive data, advanced analytics, and diverse portfolio of online platforms. The company is well-positioned to capitalize on the growing demand for digital solutions in the real estate sector.
Key Customers
- Commercial real estate brokers and agents.
- Property owners and investors.
- Apartment community managers.
- Real estate appraisers and consultants.
- Corporate real estate professionals.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $834M | -$31M | $-0.07 |
| Q2 2025 | $781M | $6M | $0.01 |
| Q1 2025 | $732M | -$15M | $-0.04 |
| Q4 2024 | $709M | $60M | $0.15 |
Source: Company filings
Chart & Info
Price Chart
CoStar Group, Inc. (CSGP) stock price: $48.94 (+0.00, +0.00%)
Why Bull
- •CoStar's insider activity suggests confidence, with recent purchases signaling strong belief in the company's long-term prospects.
- •Community sentiment leans bullish, driven by positive discussions about CoStar's expanding market presence and innovative data solutions.
- •Market perception views CoStar as a leader in commercial real estate data, benefiting from the increasing digitization of the industry.
- •Bullish community views highlight CoStar's strong competitive advantage and its ability to maintain high subscription renewal rates.
Why Bear
- •Some insiders have sold shares, potentially indicating concerns about short-term growth or market saturation in certain segments.
- •Bearish community views express worries about CoStar's aggressive acquisition strategy and integration challenges.
- •Market perception includes skepticism about CoStar's ability to sustain its growth rate as competition intensifies and economic conditions potentially weaken.
- •Community sentiment also reflects concerns about CoStar's pricing strategy and its impact on smaller businesses within the commercial real estate sector.
Latest News
-
Did CoStar’s Homes AI Launch on Homes.com Just Shift CoStar Group's (CSGP) Investment Narrative?
Simply Wall St. · Feb 19, 2026
-
CoStar's Core Network Runs at 47% Margins. Is Homes.com Still Driving the Discount?
Motley Fool · Feb 19, 2026
-
3 Stocks That May Be Trading Below Estimated Value In February 2026
Simply Wall St. · Feb 19, 2026
-
Why Is CoStar (CSGP) Stock Soaring Today
StockStory · Feb 18, 2026
Technical Analysis
Rationale
AI-generated technical analysis for CSGP including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for CSGP.
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Current price: $48.94
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CSGP.
Price Targets
Median: $72.00 (+50.3% from current price)
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
- Revenue Growth 4/100
- Gross Margin 10/100
- Operating Leverage 4/100
- Cash Runway 8/100
- R&D Intensity 7/100
- Insider Activity 6/100
- Short Interest 10/100
- Price Momentum 0/100
- News Sentiment 5/100
What does this score mean?
The MoonshotScore rates CSGP's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Did CoStar’s Homes AI Launch on Homes.com Just Shift CoStar Group's (CSGP) Investment Narrative?
CoStar's Core Network Runs at 47% Margins. Is Homes.com Still Driving the Discount?
3 Stocks That May Be Trading Below Estimated Value In February 2026
Why Is CoStar (CSGP) Stock Soaring Today
Frequently Asked Questions
What does CoStar Group, Inc. do?
CoStar Group, Inc. is a leading provider of information, analytics, and online marketplace services to the commercial real estate industry. The company offers a comprehensive suite of tools, including CoStar Property, CoStar COMPS, and CoStar Market Analytics, which provide real estate professionals with the data and insights they need to make informed decisions. CoStar also operates a network of online marketplaces, such as Apartments.com and Homes.com, which connect renters and buyers with properties. The company's services are used by a wide range of customers, including brokers, property owners, and investors.
Is CSGP stock a good buy?
CSGP stock presents a mixed picture for investors. While the company has a dominant market position and strong growth potential, its high P/E ratio of 1040.03 raises valuation concerns. The company's high gross margin of 79.3% and diverse revenue streams are positive factors. Investors should consider their risk tolerance and investment horizon before investing in CSGP. A potential investor should closely monitor the company's growth in online marketplaces and its ability to maintain its competitive advantage in the face of increasing competition.
What are the main risks for CSGP?
The main risks for CSGP include an economic downturn and decline in real estate activity, which could reduce demand for its services. Increased competition from existing and new players could erode market share. Changes in regulations and policies could impact the real estate industry. Data security breaches and privacy concerns could damage CoStar's reputation. The company's high valuation also presents a risk, as any negative news could lead to a significant decline in the stock price. Investors should carefully consider these risks before investing in CSGP.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.