DailyIQ
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Sector:Real EstateAll sectors
Last updated 2 hours ago

CSGP·CoStar Group, Inc.

$.
+. (+.%)
After Hours
High
$31.08
Open
$29.92
Market Cap
12.35B
52W High
$97.43
Low
$29.06
P. Close
$30.26
P/E
498.10
52W Low
$29.08
Fwd P/E
16.82
DailyIQ Est.
$51.58
Technical Score (1D)
23
SELL
News Sentiment
77
BULLISH
CoStar Group unveiled its new Apartments.com AI conversational search tool on June 16, replacing static filters with natural‑language processing to deliver personalized apartment recommendations. The platform draws on CoStar’s extensive multifamily database and offers detailed answers, community comparisons, and 3D tour guidance, aiming to boost user engagement and transaction volume. Analysts will watch early adoption metrics and any lift in revenue from premium services, as the feature signals a broader AI‑driven growth strategy. This launch follows a valuation narrative that highlights a large gap between the company’s trailing P/E of 430 and a forward P/E near 19, suggesting potential upside if earnings normalize. The valuation disparity has prompted recent coverage upgrades, including Benchmark’s buy rating and a $45 price target, underscoring optimism about future earnings momentum. Meanwhile, CoStar’s data continues to reflect a balanced U.S. residential market, with May median home prices rising to $395,000 while sales volumes held steady amid higher mortgage rates, supporting subscription demand for its analytics services. The company’s recent $800 million cash acquisition of Zonda is expected to be EPS accretive in the first full year and expands its B2B data footprint into the new‑home construction sector, potentially raising margin profiles. Investors should monitor the integration timeline and any changes to the debt profile, as the deal increases leverage and could influence capital allocation decisions. Upcoming earnings guidance will be critical to confirm whether the AI initiative and Zonda acquisition translate into sustained revenue growth, especially given recent three‑month share price weakness. Watch for early adoption data from Apartments.com AI and the first quarterly earnings report for signs of accelerated transaction volume and subscription expansion.
Earnings Summary
CoStar Group, Inc. is a leading provider of real‑estate information, analytics, and online marketplaces, serving commercial real‑estate professionals across North America, Europe, and parts of Asia and Latin America; its core offerings include LoopNet.com and Homes.com, positioning it as a central resource within the real‑estate services sector. In the most recent two quarters, CoStar posted EPS of $0.31 in Q4 2025 and $0.23 in Q1 2026, both beating analyst estimates of $0.2795 and $0.1877 respectively, while revenue rose to $900 million in Q4 2025 and held steady at $897 million in Q1 2026, a slight decline from the $900 million Q4 2025 figure; compared to the prior two quarters (Q3 2025 EPS $0.23, revenue $833.6 million and Q4 2024 EPS $0.2606, revenue $709.4 million), the company has maintained a consistent EPS beat pattern across six of seven quarters and has shown revenue growth that accelerated through Q4 2025 before modestly decelerating in Q1 2026. Historically, CoStar’s YoY revenue growth has been robust, with a 26% jump from Q4 2024 to Q4 2025, and EPS has trended upward, though the most recent quarter indicates a slight slowdown in earnings momentum; the company has consistently outperformed estimates, underscoring a pattern of strong earnings guidance and resilient subscription‑based revenue streams. Recent news highlights the $800 million cash acquisition of Zonda, which analysts expect to be EPS accretive in the first full year and to broaden CoStar’s subscription‑based revenue base in the home‑construction market, while also increasing debt load and potentially affecting capital allocation; the market has reacted with a 21% decline over three months followed by a modest 4% rebound, reflecting valuation pressure amid muted earnings guidance. Investors should watch for any shift in revenue trajectory or guidance in the upcoming earnings release, monitor progress on the integration of Zonda’s platform and the timing of the deal’s closing, and keep an eye on debt‑related disclosures that could influence future capital allocation decisions.}}

EPS

EstBeatMiss
$0.08$0.14$0.21$0.27$0.34Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.29 - -
Q1'26$0.19$0.23+22.5%
Q4'25$0.28$0.31+10.9%
Q3'25$0.19$0.23+21.8%
Q2'25$0.14$0.17+23.4%
Q1'25$0.11$0.19+81.7%

Revenue

EstBeatMiss
$700M$770M$840M$910M$980MQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$948M - -
Q1'26$915M$897M-1.9%
Q4'25$904M$900M-0.4%
Q3'25 - $834M -
Q2'25 - $781M -
Q1'25 - $732M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

CSGP Stock Snapshot

CSGP is currently trading at $30.69, giving CoStar Group, Inc. a market cap of 12.35B and a P/E ratio of 498.1. Today's range spans $29.06–$31.08, with shares opening at $29.92 and moving up $0.43 (1.4%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 77/100.

Over the past year CSGP has traded between $29.08 and $97.43 - the current price is +5.5% off the 52-week low and -68.5% from the high. 27 analysts cover the stock with a Buy consensus and a mean 12-month target of $48.25 (range $33.00–$70.00), implying upside of +57.2%.

The path of least resistance for CoStar Group, Inc. (CSGP) is currently lower - 23/100 (SELL), bullish sentiment (77/100), price $30.69 (near 52-week lows within $29.08–$97.43). The current P/E ratio stands at 498.1. At 12.35B in Real Estate market cap, this large-cap name is in the zone where portfolio risk managers - not just traders - are making decisions. Trimming positions on technical deterioration is standard practice at this size, and the current setup gives them a clear rationale to act.

When a large-cap Real Estate name with 12.35B in capitalization prints a SELL signal (23/100) alongside bullish news sentiment (77/100), the risk isn't just price depreciation — it's the loss of institutional sponsorship that makes recovery harder. At $30.69 (near 52-week lows in the $29.08–$97.43 range), the structural support levels are where that sponsorship question gets answered.