Apr. 18 at 3:03 AM
$CSGP Heads up alert! Upcoming earnings on Tuesday, 4/22/2025 for
$CSGP Bearish (2.5)
CoStar Group (CSGP) is currently facing substantial headwinds, as indicated by recent reports forecasting a sharp decline in bookings for Q1, anticipated to drop by 40% year-over-year.
This decline highlights the ongoing struggles within its Homes.com segment, which has shown consistent weakness.
The company's P/E ratio currently stands at approximately 58.3, which is notably high compared to the industry average of around 30, suggesting that the stock may be overvalued given its recent performance.
Moreover, CoStar's earnings per share (EPS) growth has been declining, contributing to a bearish outlook.
Revenue forecasts for the upcoming quarter are being revised downward, reflecting investor skepticism regarding its growth prospects.
In terms of competitive positioning, CoStar's recent moves, including a bid to acquire Domain Holdings, suggest a strategic attempt to bolster its market share, yet this has been met with mixed reactions from investors.
Analysts have raised concerns about the high valuation of the acquisition target and the potential dilution of shareholder value.
Despite these challenges, the company has managed to maintain a long-term CAGR of 9.9% over the past three years, indicating some resilience.
However, with the current economic climate and internal struggles, investor sentiment remains cautious.
Looking ahead, CoStar is scheduled to report its Q1 2025 earnings on April 29, 2025.
Analysts anticipate a challenging quarter, with consensus estimates indicating lower revenue and earnings compared to prior periods.
Historical performance suggests that the company has struggled to meet expectations in recent quarters, which could further dampen investor sentiment.
The upcoming earnings report is crucial; a significant miss could exacerbate the stock's current bearish trend, while any positive surprises may provide a much-needed boost to its valuation and investor confidence.
Given the current landscape, market participants will be closely watching the earnings call for insights into management's strategic direction and any potential recovery plans.
- Funds were net buyers of
$CSGP during the previous reporting quarter.
- Top 5 funds with large holdings in
$CSGP:
* AKRE Capital Management LLC
$667MM. CGMFundRank: 93%, Fund Website: www.akrecapital.com
* Baillie Gifford & Co Ltd
$566MM. CGMFundRank: 77%, Fund Website: www.bailliegifford.com
* Polen Capital Management LLC
$465MM. New position. CGMFundRank: 71%, Fund Website: www.polencapital.com
* Tiger Global Management LLC
$232MM. New position. CGMFundRank: 87%, Fund Website: www.tigerglobal.com
* Rgm Capital LLC
$158MM. CGMFundRank: 86%, Fund Website: www.rgmcapital.com
- Last 10 days performance: 5%
- Last 30 days performance: 2%
- Last 90 days performance: 8%
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