CoStar Group CSGP shares have plunged 55.4% year to date (YTD), significantly underperforming the Zacks Computer & Technology sector's return of 14.7%. The drop reflects investor concerns surrounding elevated investments in Homes.com and stiff competition against the likes of Zillow, Redfin and Realtor.com as well as a challenging commercial real estate market. These factors have weighed on near-term profitability despite CSGP’s continued double-digit revenue growth.
However, CoStar remains focused on expanding its global real estate ecosystem. On Thursday (July 2), CoStar launched its flagship CoStar platform in France, expanding its commercial real estate intelligence platform to one of Europe’s largest commercial real estate markets. The launch builds on the company's acquisitions of BureauxLocaux and Business Immo, together with years of investment in proprietary local research to create one of the most comprehensive commercial property databases in France.
The platform provides investors, brokers, owners, occupiers and lenders with a single interface to curated property records, live property availabilities, verified sales and lease comparables, exclusive industry news and real-time market analytics. At launch, the French platform covers more than 290,000 commercial properties, 385,000 commercial tenants, 90,000 active property availabilities, 75,000 lease activities and sales comparables along with more than 134 market and submarket reports on key markets such as Greater Paris, Lyon and Marseille.
The launch in France strengthens CoStar’s global network. The company has more than 320,000 commercial real estate professionals who subscribe to its platform, offering French customers access to international commercial property markets and its subscribers the ability to evaluate investment opportunities in France seamlessly. The launch is expected to deepen customer engagement, expand cross-border subscription opportunities and strengthen CoStar's long-term recurring revenue growth.
CoStar Group, Inc. Price and Consensus
CoStar Group, Inc. price-consensus-chart | CoStar Group, Inc. Quote
International Expansion Strengthens CoStar's Growth Story
The France expansion supports CoStar’s strategy of becoming the leading global commercial real estate information and analytics provider. The company has invested more than $5 billion over the past four decades to build its proprietary real estate database, which now tracks approximately 9 million properties, 8 million commercial tenants, 2 million property owners, 7 million lease activities, 5 million sales comparables and more than 15,000 market reports worldwide.
CoStar continues to expand its commercial real estate platform through new data products and AI-powered solutions. The addition of CoStar Rent Benchmark, CoStar New Homes and CoStar Debt Solutions broadens the platform's capabilities across property analytics, residential construction intelligence and commercial lending. These offerings, combined with the company's growing international footprint, are expected to strengthen CoStar's competitive position, deepen customer engagement and support long-term recurring subscription revenue growth.
CSGP Offers Strong Q2 Guidance
CoStar's expanding commercial real estate platform and growing global footprint position the company well for sustained top-line growth. The company expects second-quarter 2026 revenues to be in the range of $922-$932 million.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $929.32 million, indicating year-over-year growth of 19%.
The consensus mark for earnings per share is pegged at 28 cents per share, which has remained unchanged over the past 30 days. The figure implies a year-over-year increase of 64.7%.
CSGP’s Zacks Rank & Other Stocks to Consider
Currently, CoStar Group carries a Zacks Rank #2 (Buy).
Digital Turbine APPS, Dell Technologies DELL and Flex FLEX are some other top-ranked stocks that investors can consider from the broader Zacks Computer and Technology sector. Digital Turbine, Dell Technologies and Flex sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
APPS shares have rallied 154.2% in the year-to-date period. The long-term earnings growth rate for Digital Turbine is pegged at 18.98%.
DELL shares have surged 213.2% in the year-to-date period. The long-term earnings growth rate for Dell Technologies is pegged at 26.35%.
Shares of FLEX have gained 126.5% in the year-to-date period. The long-term earnings growth rate for Flex is pegged at 45.76%.
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CoStar Group, Inc. (CSGP): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).