Bull’s Eye Report: Costar Group (CSGP)

by Dave Moenning | September 6, 2013 12:28 pm

At StateoftheMarkets.com[1], we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Why We Like The Stock:

CoStar Group (CSGP[2]) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance) in a strong sub-industry. Internet software and services stocks have been hot this year, as shown in charts like WebMD (WBMD[3]), Yahoo! (YHOO[4]), and CSGP.

CSGP is what we like to call a “rocket ship,” though as long as we manage our stops properly, we have no problem taking a shot here. CSGP rarely pulls back, and when it does, it doesn’t consolidate for long. The stock recently hit intraday highs in mid August of $164.63 before pulling back to current prices. It already seems to have based and turned a corner, and is back on the upswing after a few weeks of consolidation. We wouldn’t waste any time getting in on this stock while prices are a bit lower, as given the way it’s been trending the past two years, there may not be another opportunity for a long while.

We Would Be Buyers:

At the current price (~$157.37), or on a pullback to $150.

Company Profile:

CoStar Group is a provider of information, analytics and marketing services to the commercial real estate industry in the United States and United Kingdom. The company’s suite of online service offerings includes information about space available for lease, comparable sales information, tenant information, information about properties for sale, Internet marketing services, analytical capabilities, information for clients’ websites, information about industry professionals and their business relationships, data integration and industry news.

Stock Rating: 9.4

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Costar Group – Last Three Months

csgp 1 Bull's Eye Report: Costar Group (CSGP)[5]

Costar Group – Last 12  Months

csgp 2 Bull's Eye Report: Costar Group (CSGP)[6]

Costar Group – Last Five Months

csgp 3 Bull's Eye Report: Costar Group (CSGP)[7]

Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”[8]

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

Endnotes:
  1. StateoftheMarkets.com: http://www.StateoftheMarkets.com
  2. CSGP: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSGP
  3. WBMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=WBMD
  4. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  5. [Image]: http://investorplace.com/wp-content/uploads/2013/09/csgp-1.png
  6. [Image]: http://investorplace.com/wp-content/uploads/2013/09/csgp-2.png
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/09/csgp-3.png
  8. Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”: http://stateofthemarkets.com/wp-content/uploads/2013/08/Top5SpecialReport.pdf

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