Stock Analysis | CoStar Group Outlook - A Strong Technical Outlook Amid Mixed Analyst Expectations

Generated by AI AgentAinvest Stock Digest
Friday, Aug 22, 2025 9:28 pm ET2min read
Aime RobotAime Summary

- CoStar Group (CSGP) faces a 6.5% price drop but shows strong bullish technical signals (score 7.87) and positive institutional money flows (8.06).

- Analyst ratings are split (2 "Strong Buy" to 1 "Sell"), with market sentiment neutral despite mixed legal risks in sports sectors.

- Technical indicators (RSI, MACD) and inverted hammer patterns suggest volatility but no bearish signals, supporting cautious optimism.

- Institutional confidence contrasts with retail outflows, highlighting potential for rebound amid unclear near-term directional clarity.

Market Snapshot

Takeaway:

(CSGP) is showing strong technical momentum with a cautious yet optimistic trend, but recent price action shows a fall of -6.50%.

Stance: The stock is currently facing a price fall, but the technical signals are bullish with a score of 7.87 (internal diagnostic score, 0-10).

News Highlights

Recent Developments:

  • May 30, 2025: A new antitrust class action was filed against the UFC on behalf of non-UFC professional MMA fighters. While unrelated to , it highlights legal risks in the sports sector, which may indirectly affect market sentiment.
  • May 29, 2025: Major League Baseball announced a partnership with a new professional softball league. This could positively impact broader sports-related sectors, although CoStar is not directly involved.
  • May 30, 2025: Med-X Inc. launched a Regulation A+ public offering to raise up to $10 million for eco-friendly pest control solutions. This shows continued innovation in health and wellness sectors, which could reflect broader investor confidence in tech-driven solutions.

Analyst Views & Fundamentals

Analyst Ratings Overview:

  • Average Rating Score (Simple Mean): 3.75
  • Weighted Rating Score (Performance-Weighted): 2.61
  • Rating Consistency / Dispersion: There are differences among analysts. Ratings are spread out, with 2 "Strong Buy," 3 "Buy," 2 "Neutral," and 1 "Sell."
  • Alignment with Price Trend: The current price fall is in line with the weighted expectations, showing that the market is relatively neutral.

Key Fundamental Factor Values:

  • Asset-Liability Ratio: 18.14%
  • Revenue-Market Value: 0.85
  • Price-to-Book (PB): 0.25
  • ROE (Diluted, YoY Growth Rate): -0.14%
  • Price-to-Earnings (PE): 422.66
  • ROA: 0.06%
  • PB-ROE: -0.68
  • ROE: 0.07%
  • Total Assets Turnover Ratio: 0.15
  • Cash-Market Value: 63.01%

Model Scores (Internal Diagnostic Scores 0-10):

  • Asset-Liability Ratio: 1.00
  • Revenue-Market Value: 0.00
  • Price-to-Book (PB): 3.00
  • ROE (Diluted, YoY Growth Rate): 2.00
  • Price-to-Earnings (PE): 3.00
  • ROA: 3.00
  • PB-ROE: 3.00
  • ROE: 3.00
  • Total Assets Turnover Ratio: 0.00
  • Cash-Market Value: 1.00

Money-Flow Trends

Big Money vs. Retail Flows:

  • Overall Inflow Ratio: 0.56 (positive)
  • Block Inflow Ratio: 0.57 (positive)
  • Large Inflow Ratio: 0.49 (negative)
  • Extra-Large Inflow Ratio: 0.58 (positive)
  • Small Inflow Ratio: 0.49 (negative)
  • Fund Flow Score: 8.06 (excellent internal diagnostic score, 0-10).

Big-money flows (block and extra-large) are positive, while retail (small and large) are negative. This suggests institutional confidence in the stock despite recent price falls.

Key Technical Signals

Internal Diagnostic Scores for Technical Indicators (0-10):

  • Long Lower Shadow: 8.17 (Strong bullish)
  • WR Oversold: 7.49 (Bullish bias)
  • MACD Death Cross: 7.50 (Neutral rise)
  • Inverted Hammer: 8.07 (Strong bullish)
  • RSI Oversold: 8.13 (Strong bullish)

Recent Chart Patterns (Last 5 Days):

  • August 8, 2025: MACD Death Cross signal
  • August 11, 2025: WR Oversold signal
  • August 12, 2025: WR Oversold signal
  • August 13, 2025: Long Lower Shadow and RSI Oversold signals
  • August 14, 2025: Inverted Hammer signal

Technical Summary: Technical indicators show the market is in a volatile state, but the overall trend is bullish with 5 positive signals and no bearish ones. The momentum is strong and optimistic, though the direction is not entirely clear.

Conclusion

Actionable Takeaway: CoStar Group (CSGP) presents a compelling case for cautious optimism, particularly for technical traders. The internal diagnostic score for technical analysis is 7.87 (out of 10), and the fund-flow score is 8.06 (also out of 10). While the stock has seen a recent price fall of -6.50%, the technical signals and money flow suggest strong institutional confidence. Watch upcoming earnings for confirmation of the bullish trend and consider waiting for a potential pullback before entering the position.

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