Arlington, Virginia-based CoStar Group, Inc. (CSGP) provides information, analytics, and online marketplace services to real estate and related business communities in the United States and internationally. The company has a market cap of $12.7 billion and a wide array of digital service offerings, including leasing and selling marketplaces, sales comparable information, decision support, contact management, tenant information, and more.
CoStar Group shares have lagged behind the broader market over the past year, declining 64.7% compared to the S&P 500 Index’s ($SPX) 19.3% surge. Moreover, in 2026, the stock has fallen nearly 53.3%, underperforming the SPX’s 12.4% rise as well.
Zooming in, the State Street Real Estate Select Sector SPDR ETF (XLRE) has grown 9% over the past year, outperforming the stock. In 2026, XLRE has grown 10.6% and has also outpaced the stock.
Analysts and investors are wary of CSGP stock because of its shaky fundamentals. The company’s costs have risen faster than its revenue over the last five years, leading to a decline in its operating margin by 16.3%. Moreover, its free cash flow margin has also fallen by 10.8% over the past five years. Also, the company has been experiencing a decline in its returns on capital, while already being in a weak position, indicating no returns from previous investments.
For the current year, which ends in December, analysts expect CSGP’s EPS to grow 100% to $1.06 on a diluted basis. The company surpassed the consensus estimate in each of the last four quarters.
Among 20 Wall Street analysts covering CSGP stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” nine “Holds,” o and one “Strong Sell.”
The configuration has grown more bearish over the past months, with the stock now having nine “Strong Buy” ratings, down from 11 recorded three months ago.
On July 30, BMO Capital analyst Jeffrey Silber maintained a “Hold” rating for CSGP stock and lowered its price target from $53 to $31.
CSGP’s mean price target of $35.74 offers a 13.9% upside compared to the current market price. Its Street-high target of $52 implies a robust 65.7% upside from current levels.
On the date of publication, Aritra Gangopadhyay 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.
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