$CSGP

Housing stocks like Zillow (Z), Opendoor (OPEN), Compass (COMP), and CoStar (CSGP) rose on Thursday amid a tech sell-off, benefiting from a drop in bond yields and mortgage rates. The 10-year Treasury yield fell 10 basis points, reducing 30-year mortgage rates to 7.33%. Despite recent gains, these stocks have underperformed over the past five years due to a sluggish housing market.

CoStar Group (CSGP) operates a dominant commercial real estate data platform but faces scrutiny over its investment in Homes.com, which has led to a 160 P/E ratio. The core business shows strong growth and profitability, while Homes.com posted its first profitable quarter. Investors debate whether Homes.com is a growth opportunity or a financial drain.

CoStar Group (CSGP) shares fell 3.8% after its Commercial Repeat Sale Indices projected a 63% drop in commercial property deliveries by September 2026. The data also indicated softer demand, with net absorption expected to decline. CoStar's stock closed at $27.02, down 58.9% year-to-date and 68.1% below its 52-week high. The company's revenue grew 20.4% year-over-year, but its operating margin turned negative, raising concerns about future profitability.

The S&P 500 is near record highs, but only half of its components are above their 200-day averages, down from 70% in midsummer. New 52-week lows outnumber new highs, signaling potential vulnerability. CoStar Group, Boston Scientific, and Intuit have each lost over 50% in 2026. The rally depends on strength in large-cap stocks. Investors should monitor market breadth and macroeconomic data for signs of a healthier rally.

CoStar Group (CSGP) reported 18.44% revenue growth in Q2 2026, down from 26.89% in Q4 2025, marking two consecutive quarters of deceleration. Management cut full-year revenue guidance but raised adjusted EBITDA guidance by $30 million. Net new bookings fell 26% year over year, attributed to strategic decisions in Ten-X, Homes.com, and Apartments.com. GAAP EBITDA showed significant volatility, contrasting with smoother adjusted figures.

CoStar Group (CSGP) has underperformed the S&P 500 and rival CBRE Group (CBRE) over the past year. Despite a 30% decline, analysts maintain a 'Moderate Buy' rating with an average price target of $36.21, suggesting 18.9% upside potential.

CoStar Group (NASDAQ: CSGP) appointed Felix Kusch as President of Homes.com. Kusch previously led real estate portals in Europe. Homes.com reported a 66% revenue increase to $28.5M YoY, with the residential segment turning profitable, generating $12M in adjusted EBITDA in Q2 2026.

CoStar Group forecasts Canada's office vacancy rate to decline to 8.7% by 2028, with higher-end assets outperforming. Vacancy peaked at 10.4% in Q2 2025, falling to 9.8% in Q2 2026. Rent growth for premium assets is expected to reach 4%, compared to 2% for others. The decline is driven by limited new construction, not increased demand. CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate data and analytics.

Canada's retail vacancy rate is expected to remain near 2.5% as the sector recovers from Hudson’s Bay store closures, according to CoStar Group. Vacancy spiked to 8% in Q2 2025, with net absorption at -5M sq ft. Rent growth is slowing, projected to reach 0% by Q2 2027 before rebounding to 3% by 2028. CoStar Group (CSGP) is a global real estate data and analytics provider.

CoStar Group Inc. (CSGP) shares declined 2.43% to $30.91 on Friday, underperforming the broader market. The S&P 500 and Dow Jones fell 0.38% and 0.51%, respectively. The stock is 66.36% below its 52-week high of $91.89.