Federal Reserve and Interest Rates - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25% on September 17, marking the first rate cut of the year [1] - The Fed's dot-plot indicates two additional rate cuts of 25 basis points each in 2025 and one in both 2026 and 2027 [1] Fintech Industry Overview - The fintech sector benefits from a low-interest-rate environment, which fosters technological improvement and product innovation [2] - The growth of mobile and broadband networks, along with advancements in AI and machine learning, positions fintech for significant expansion [3] Investment Recommendations - Five fintech companies are recommended for investment based on favorable Zacks Ranks: CoStar Group Inc. (CSGP), PayPal Holdings Inc. (PYPL), SoFi Technologies Inc. (SOFI), Interactive Brokers Group Inc. (IBKR), and Robinhood Markets Inc. (HOOD) [4][9] - All five companies exhibit strong revenue and earnings growth expectations for the current year [9] CoStar Group Inc. (CSGP) - CSGP benefits from a resilient subscription business and a strong portfolio of marketplaces, with global traffic reaching 141 million in Q2 2025 [7] - New product launches, such as Matterport 3D tours and AI voice search, enhance customer experience [8] - Expected revenue and earnings growth rates for CSGP are 18.1% and 21.1%, respectively, for the current year [10] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume and strengthening customer engagement [11] - The company leverages AI for fraud detection and operational efficiency, contributing to an expected revenue and earnings growth rate of 4% and 12.5%, respectively, for the current year [13] SoFi Technologies Inc. (SOFI) - SOFI is positioned as a leader in online banking services, benefiting from lower interest rates that encourage customer growth [14] - The expected revenue and earnings growth rates for SOFI are 31.7% and over 100%, respectively, for the current year [16] Interactive Brokers Group Inc. (IBKR) - IBKR's initiatives to enhance its global presence and product suite are expected to support revenue growth, with a projected CAGR of 6.5% by 2027 [17] - Expected revenue and earnings growth rates for IBKR are 8.9% and 11.4%, respectively, for the current year [19] Robinhood Markets Inc. (HOOD) - HOOD operates a financial services platform that allows users to invest in various assets, benefiting from increased retail market participation [20][21] - The expected revenue and earnings growth rates for HOOD are 35.4% and 41.3%, respectively, for the current year [22]

Core Insights - CoStar Group, Inc. has been recognized as one of GlobeSt.'s Best Places to Work in Commercial Real Estate (CRE) for 2025, highlighting its commitment to workplace culture and employee satisfaction [1] Company Overview - CoStar Group is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology [1] - The company employs over 8,300 individuals globally, indicating its significant scale and presence in the industry [1]

Core Insights - The U.S. hotel industry is experiencing mostly negative year-over-year comparisons, as reported by CoStar's latest data through September 13, 2025 [1][2]. Performance Metrics - Anaheim reported the largest declines in key performance metrics: occupancy decreased by 15.4% to 70.6%, Average Daily Rate (ADR) fell by 10.5% to US$212.16, and Revenue per Available Room (RevPAR) dropped by 24.2% to US$149.80 [2]. - Washington, D.C. also saw significant performance drops: occupancy decreased by 11.7% to 67.8%, ADR fell by 7.4% to US$198.85, and RevPAR declined by 18.3% to US$134.77 [2]. - Overall, 16 out of the Top 25 Markets reported a decline in occupancy [3]. Additional Data - CoStar's hotel performance sample includes over 90,000 properties and 11.8 million rooms globally [4]. - The U.S. hotel industry reported an occupancy rate of 65.4% (down 1.8%), an ADR of US$162.71 (up 0.1%), and a RevPAR of US$106.43 (down 1.7%) [7].

Core Insights - CoStar Group, Inc. has been recognized for its leadership in the online real estate marketplace and analytics sector [1] - Andy Florance, the Founder and CEO, was included in Virginia Business' Virginia 500 power list, highlighting influential leaders in various sectors [1] Company Overview - CoStar Group, Inc. is a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology [1] - The company operates within the property markets, indicating a strong focus on real estate technology and data analytics [1] Leadership Recognition - Andy Florance's recognition on the Virginia 500 power list underscores his influence and leadership in the business and real estate sectors [1] - The Virginia 500 list is an annual ranking that identifies key leaders across multiple sectors, emphasizing the importance of leadership in driving industry success [1]

Core Points - CoStar Group, Inc. has announced that its Founder and CEO Andy Florance has been named one of Washingtonian Magazine's 2025 Tech Titans, highlighting his influence in the tech industry [1] - This recognition marks the fourth consecutive year that Florance has been included in this prestigious list, which celebrates innovative leaders in the Washington region [1]

Core Insights - CoStar Group, Inc. operates as an information services provider in the commercial real estate industry with a market cap of $36.6 billion, offering services across the Americas, Europe, and the Indo-Pacific [1][2] Financial Performance - CoStar's stock reached a 52-week high of $97.43 on August 5 and is currently trading 10.6% below that peak, with a 6.4% gain over the past three months, underperforming the Nasdaq Composite's 12.4% increase during the same period [3] - Year-to-date, CoStar's stock has increased by 21.6% and 9.4% over the past 52 weeks, outperforming the Nasdaq's 14.2% gains in 2025 but lagging behind its 26.7% surge over the past year [4] - Following the release of Q2 results on July 22, CoStar's stock surged 6.9% in the trading session and maintained positive momentum for the next five sessions, marking the 57th consecutive quarter of double-digit topline growth [5] - Q2 2025 revenues surged 15.2% year-over-year to $781 million, exceeding Street expectations by 1.3%, while adjusted EBITDA skyrocketed 107.3% year-over-year to $85 million [5] - Adjusted EPS increased 13.3% year-over-year to $0.17, surpassing consensus estimates [6] Market Position - CoStar has underperformed compared to its peer, Jones Lang LaSalle Incorporated, which saw a 24.2% surge in 2025 and 23.9% gains over the past 52 weeks [7] - Among 16 analysts covering CoStar stock, the consensus rating is a "Moderate Buy," with a mean price target of $97, suggesting an 11.4% upside potential from current price levels [7]

Core Insights - The article compares two companies, Epam (EPAM) and CoStar Group (CSGP), to determine which stock is more undervalued for investors in the Computers - IT Services sector [1] Valuation Metrics - EPAM has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CSGP, which has a Zacks Rank of 4 (Sell) [3] - EPAM's forward P/E ratio is 13.84, significantly lower than CSGP's forward P/E of 100.94, suggesting EPAM is more attractively priced [5] - The PEG ratio for EPAM is 1.75, while CSGP's PEG ratio is 2.37, indicating that EPAM's valuation is more favorable when considering expected earnings growth [5] - EPAM's P/B ratio is 2.36, compared to CSGP's P/B of 4.25, further supporting the argument that EPAM is undervalued [6] Investment Conclusion - Based on the stronger estimate revision activity and more attractive valuation metrics, EPAM is positioned as the superior option for value investors at this time [7]

Core Insights - Homes.com, a leading online residential marketplace by CoStar Group, released a report analyzing home price trends in August, indicating that U.S. home price growth remained muted [1] - The national median home price increased by 2.4% year-over-year to $389,000, which is an increase of $9,000 from last August, although prices are still below previous levels [1] Price Trends - Preliminary data shows that the growth in home prices across major metros and house types has been limited in August [1] - The reported increase in the national median home price reflects a modest recovery in the housing market [1]

Core Viewpoint - Goldman Sachs maintains a Buy rating and a $105 price target on CoStar Group, emphasizing the growth potential in the U.S. residential real estate market [1] Group 1: Market Potential - CoStar identifies inefficiencies in current real estate portals, which prioritize lead generation over property marketing [1] - The estimated total addressable market for U.S. residential real estate is $3 billion, with potential EBITDA of $1.5 billion, significantly larger than Apartments.com [1] Group 2: Business Performance - Residential bookings have remained robust, with 2,000 to 2,500 new memberships added monthly since April [2] - CoStar anticipates residential spending to reach approximately $900 million this year [2] Group 3: Expansion Strategy - CoStar is pursuing international expansion through the acquisition of Domain in Australia and investment in OnTheMarket in the UK [2] - CoStar Suite and Apartments.com continue to perform well despite challenges in the commercial real estate sector [2]

Core Viewpoint - Markets are anticipating the Federal Reserve to cut rates before the end of the year, which is typically bullish for equities as it stimulates corporate activity and consumer demand [1] Group 1: Real Estate Sector Impact - Real estate is expected to benefit significantly from lower mortgage rates, which will attract buyers back into the housing market and accelerate commercial leasing activity [2] - Zillow Group is highlighted as a strong candidate for benefiting from rate cuts, having seen a 40% increase in stock price since April [2][3] - CoStar Group, operating in the commercial property market, is also well-positioned to benefit from a rate-cut environment, although its stock has rallied less aggressively compared to Zillow [6][7] Group 2: Company Performance and Analyst Ratings - Zillow Group has shown strong performance despite issuing softer forward guidance, with analysts from Evercore ISI and KeyCorp maintaining Overweight ratings and setting price targets as high as $95, indicating nearly 20% upside potential [4][5] - CoStar Group has consistently topped analyst expectations and has received an Outperform rating from Wolfe Research with a price target of $105, suggesting about 15% upside from current levels [8][9] Group 3: Market Outlook and Expectations - There is high market confidence in a rate cut occurring soon, with indications that labor markets are cooling and price pressures are easing, making a modest rate cut widely anticipated [10] - For real estate-linked stocks like Zillow and CoStar, lower borrowing costs are expected to reignite housing and commercial activity, enhancing investor appetite for rate-sensitive sectors [11]