Core Insights - Brown Advisory's Large-Cap Growth Strategy reported a net return of -0.88% in Q3 2025, underperforming the Russell 1000 Growth Index due to underweighting speculative momentum-driven stocks despite significant exposure to AI [1] Company Performance - CoStar Group, Inc. (NASDAQ:CSGP) had a one-month return of 2.46% but experienced a 10.40% decline over the past 52 weeks, closing at $69.02 per share with a market capitalization of $29.25 billion on December 03, 2025 [2] - CoStar Group, Inc. achieved revenue of $834 million in Q3 2025, reflecting a 20% year-over-year increase [4] Sector Analysis - Stock selection within the Real Estate sector positively impacted relative performance, with strong results from CoStar Group, Inc. contributing to an 18% stock gain in July due to renewed momentum in its residential and commercial platforms [3] Investment Sentiment - CoStar Group, Inc. was held by 57 hedge fund portfolios at the end of Q3 2025, a slight decrease from 59 in the previous quarter, indicating a stable interest among hedge funds [4] - While CoStar Group, Inc. shows potential, certain AI stocks are viewed as having greater upside potential and lower downside risk [4]

It has been about a month since the last earnings report for CoStar Group (CSGP) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is CoStar due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.CoStar Group Q3 Earnings Beats Estimate, Revenue Increas ...

Core Insights - CoStar Group Inc. is viewed as a strong investment option by Wall Street analysts, despite a recent price target reduction by Wells Fargo from $70 to $60, maintaining an Underweight rating [1] - The company reported a significant revenue increase of 20% year-over-year in Q3 2025, totaling $834 million, with adjusted EBITDA rising by 51% to $115 million [2] - Total net new bookings reached $84 million, marking a substantial growth of 92% [2] Legal Challenges and Market Position - CoStar faces legal challenges, including a $1 billion-plus copyright infringement claim against Zillow and an FTC antitrust suit against Zillow and Redfin, which could impact the competitive landscape [3] - Wells Fargo perceives the ongoing lawsuits against competitors as neutral to slightly positive news for CoStar, suggesting potential market advantages [1][3] Strategic Focus and Resource Allocation - The company is currently integrating new acquisitions, such as Domain, while also investing in AI technologies, which may not provide immediate returns [3] - Despite the potential of CoStar as an investment, there are suggestions that other AI stocks may offer greater upside with less risk [4]

Group 1 - The conference is concluding, and there is an emphasis on the positive experiences and partnerships formed during the event [1][2] - Acknowledgment of key individuals from CoStar, including the head of Investor Relations and the CFO, highlighting the importance of their presence and contributions [2]

CoStar Group FY Conference Summary Company Overview - **Company**: CoStar Group (NasdaqGS: CSGP) - **Date of Conference**: November 20, 2025 - **Key Speakers**: Chris Lown (CFO), Rich (Head of Investor Relations) Industry Insights Apartments Market - **Growth**: The apartments business has experienced 13 consecutive quarters of double-digit revenue growth, with a revenue increase from over $50 million to over $1.2 billion since acquisition over 10 years ago [5][6][7] - **Market Position**: CoStar is the market leader, significantly larger than its closest competitor, with a total addressable market (TAM) exceeding $9 billion [7][8] - **Technology Integration**: The introduction of Matterport Plus has enhanced customer experience, allowing virtual tours that lead to lower bounce rates and higher engagement [6][8][35] - **Sales Strategy**: A renewed focus on expanding the sales force by approximately 20% to better capture market opportunities [14][16] Competitive Landscape - **Market Dynamics**: CoStar faces competition primarily from Zillow and a few smaller players, but believes there is ample opportunity for growth due to low market penetration (15%-20%) [12][21] - **Differentiation**: CoStar emphasizes its technological edge and superior consumer experience as key differentiators in the market [12][13][21] AI and Technology - **AI Integration**: CoStar views AI as a transformative force in the industry, enhancing customer experience and operational efficiency [12][28][49] - **Data Utilization**: The company has over 2.4 trillion records, primarily proprietary, which provides a competitive advantage in data organization and analysis [46][47] Financial Performance - **Revenue Growth**: The apartments segment has shown consistent growth, with a focus on expanding into smaller property markets [5][21] - **Sales Efficiency**: The sales team is described as highly efficient, utilizing a metrics-focused approach to drive performance [19] Matterport Technology - **Adoption Rates**: 90% of users click on listings with Matterport, indicating its effectiveness in driving engagement [40][76] - **B2B Strategy**: CoStar is shifting its focus to a B2B model for Matterport, targeting larger clients rather than individual photographers [42] Homes Market - **Unique Positioning**: CoStar differentiates itself by focusing on helping listing agents and home sellers, rather than competing directly with buyer-focused platforms [52][53] - **Subscriber Growth**: The platform has over 26,000 subscribers and 130,000 paid listings, establishing itself as a market leader [56] Capital Allocation - **Buyback Program**: CoStar has accelerated its $500 million buyback program, indicating a strategic shift in capital allocation [78][79] Conclusion CoStar Group is positioned as a leader in the real estate technology space, with a strong focus on technology integration, market expansion, and capital efficiency. The company is leveraging AI and proprietary data to enhance its offerings and drive growth across its various platforms.

Core Viewpoint - The comparison between Cognizant (CTSH) and CoStar Group (CSGP) indicates that CTSH is more attractive to value investors due to its stronger earnings outlook and favorable valuation metrics [1][3][6] Valuation Metrics - CTSH has a forward P/E ratio of 13.65, significantly lower than CSGP's forward P/E of 79.77, suggesting that CTSH is undervalued relative to CSGP [5] - The PEG ratio for CTSH is 1.47, while CSGP's PEG ratio is 1.91, indicating that CTSH offers better value when considering expected earnings growth [5] - CTSH's P/B ratio stands at 2.32 compared to CSGP's P/B of 3.28, further supporting the notion that CTSH is a more attractive investment [6] Zacks Rank and Style Scores - CTSH holds a Zacks Rank of 2 (Buy), reflecting positive revisions to its earnings estimates, while CSGP has a Zacks Rank of 4 (Sell) [3] - The Style Score Value grade for CTSH is A, indicating strong fundamental metrics, whereas CSGP has a Value grade of F, highlighting its weaker valuation [6]

Core Insights - CoStar Group, Inc. (CSGP) is a leading provider of commercial real estate information and marketplace services, with a market cap of $28.8 billion [1] - The company has experienced significant underperformance compared to the broader market and the Real Estate Select Sector SPDR Fund (XLRE) over the past year [2][3] Financial Performance - In Q3, CSGP reported an adjusted EPS of $0.23, exceeding consensus estimates by 21.8%, and revenue of $833.6 million, surpassing analyst expectations of $814.4 million [4] - For the full fiscal year, CSGP anticipates adjusted EPS between $0.82 and $0.84, with revenue projected between $3.23 billion and $3.24 billion [4] - Analysts predict a 9.3% decline in CSGP's EPS to $0.49 for the current fiscal year [5] Analyst Ratings - Among 18 analysts covering CSGP, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, two "Moderate Buys," six "Holds," and one "Strong Sell" [5] - The analyst sentiment has improved over the past three months, with eight analysts now suggesting a "Strong Buy" [6] - Baird analyst Jeffrey Meuler maintained an "Outperform" rating on CSGP, lowering the price target to $100, indicating a potential upside of 47% from current levels [6]

Core Insights - The real estate sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator used to identify oversold conditions, with values below 30 indicating potential buying opportunities [1] Company Summaries - **CoStar Group Inc (NASDAQ:CSGP)**: Reported better-than-expected quarterly results with a 20% year-over-year revenue increase. Despite this, the stock fell approximately 11% over the past month, with an RSI of 26.4 and a 52-week low of $63.82. The stock closed at $67.52 [3][8] - **KE Holdings Inc – ADR (NYSE:BEKE)**: Achieved positive quarterly earnings, highlighting significant shifts in consumer demand in China's real estate sector. The stock declined around 12% in the last month, with an RSI of 20.5 and a 52-week low of $15.38. It closed at $15.60 [4][8] - **Lineage Inc (NASDAQ:LINE)**: Reported downbeat quarterly results but noted growth in Adjusted EBITDA and AFFO. The stock also fell about 12% over the past month, with an RSI of 26.8 and a 52-week low of $34.22. The stock closed at $34.62 [5][8]

Core Insights - The real estate sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **CoStar Group Inc (NASDAQ:CSGP)**: Reported better-than-expected quarterly results with a 20% year-over-year revenue increase, marking its 58th consecutive quarter of double-digit revenue growth. Despite this, the stock fell approximately 11% over the past month, with a current RSI of 26.4 and a 52-week low of $63.82. The stock closed at $67.52, showing a slight increase of 0.2% [8] - **KE Holdings Inc – ADR (NYSE:BEKE)**: Achieved positive quarterly earnings, with the CEO highlighting significant shifts in consumer demand and advancements in AI technology. The stock has decreased around 12% in the last month, with an RSI of 20.5 and a 52-week low of $15.38. It closed at $15.60, down 1.3% [8] - **Lineage Inc (NASDAQ:LINE)**: Reported disappointing quarterly results but noted growth in Adjusted EBITDA and AFFO despite challenging market conditions. The stock has also fallen about 12% over the past month, with an RSI of 26.8 and a 52-week low of $34.22. It closed at $34.62, down 3.5% [8]

Core Insights - National rent growth continues to decelerate, with annual rent growth slowing to 0.8% in October 2025, down from 0.9% in September and 1.5% at the start of the year [3][5]. Rent Trends - The national average apartment rent fell to $1,708 in October, representing a 0.3% decrease from September's revised figure of $1,713, marking the steepest October decline in over 15 years [3][4]. - October rent changes have averaged a 0.15% monthly decline from 2022 to 2024, compared to an average of 0.07% from 2010 to 2024, indicating a more pronounced decline this year [4]. Regional Performance - All regions experienced rent declines in October, with the West leading at -0.53%, followed by the South at -0.28%, the Northeast at -0.24%, and the Midwest at -0.18% [6]. - The Midwest showed the strongest annual performance with a growth of +2.2%, while the West saw a decline of -1.4% year-over-year [6]. Metro-Level Analysis - Only Las Vegas and Milwaukee reported monthly rent gains of +0.2%, while significant declines were noted in Denver (-1.3%), Austin (-1.1%), and Seattle (-0.9%) [7][8]. - Markets with high levels of new construction are experiencing the weakest rent performance, while supply-constrained metros, particularly in the Midwest and select coastal areas, continue to outperform [9][10].