Is CoStar Group Stock Underperforming the Dow?

Core Viewpoint - CoStar Group, Inc. (CSGP) is a significant player in the commercial real estate industry, providing essential information and analytics services, despite recent stock performance challenges [1][2]. Company Overview - CSGP has a market capitalization of $29.3 billion, classifying it as a large-cap stock, which highlights its size and influence in the real estate services sector [1][2]. - The company offers a vast proprietary database and generates recurring subscription revenue, which supports informed real estate and investment decisions for its customers [2]. Recent Performance - CSGP's stock has decreased by 29.2% from its 52-week high of $97.43, reached on August 5, and has declined 21.4% over the past three months, underperforming the Dow Jones Industrial Average's 5.8% increase during the same period [3]. - Over the past 52 weeks, CSGP has fallen 13.9%, while the Dow Jones Industrial Average has increased by 7.1% [4]. - Year-to-date, CSGP shares are down 3.6%, contrasting with the Dow Jones Industrial Average's 12.6% return [4]. Financial Results - On October 28, CSGP reported Q3 results that exceeded expectations, achieving a 20.4% year-over-year revenue growth to $833.6 million, surpassing consensus estimates by 2.4% [5]. - The company has recorded its 58th consecutive quarter of double-digit revenue growth, with an adjusted EPS of $0.23, which is a 4.5% increase from the previous year and above analyst expectations of $0.19 [5]. Competitive Position - CSGP has underperformed compared to its rival, CBRE Group, Inc. (CBRE), which has gained 18.3% over the past 52 weeks and 23.6% year-to-date [6].