Stock Analysis | CoStar Group Outlook - Technical Strength and Divergent Analyst Opinions

Market Snapshot

Takeaway: CoStar Group (CSGP) is showing strong technical momentum with no bearish signals, yet analysts are divided—making it a stock to watch for direction. The stock recently rose by 0.75%, but this contrasts with a mix of ratings from analysts, including "Strong Buy," "Buy," and "Sell."

News Highlights

Recent news shows a mix of unrelated developments. On May 30, Berger Montague filed an antitrust lawsuit against the UFC on behalf of non-UFC fighters, potentially signaling broader legal shifts in professional sports. Meanwhile, Major League Baseball announced a strategic investment in a new women’s professional softball league, hinting at growing interest in women’s sports. These events are unlikely to impact CoStar Group directly, but they reflect broader trends in professional sports and legal challenges in the industry.

Analyst Views & Fundamentals

Analysts are split on CSGP, with 8 institutions issuing ratings in the last 20 days. The simple average rating is 3.75 (on a scale where 5 = "Strong Buy"), while the weighted average rating is 2.61, which considers historical performance. This indicates some divergence, as market expectations are relatively neutral, but the stock price has recently risen. The weighted rating does not align with the upward price trend, suggesting uncertainty among analysts.

Fundamental Drivers

On the fundamentals, CoStar Group is performing well, with a high overall model score of 8.47. Key fundamentals include:

• Operating Revenue YoY Growth: 13.44% – this high growth rate contributed the most to the score with a weight of 25.90%.
• Current Ratio: 5.83 – showing strong liquidity (model score: 8.17).
• ROE (Return on Equity): 0.07% – contributing significantly to the model score with a weight of 24.98%.
• ROA (Return on Assets): 0.06% – also a key driver with a weight of 23.39%.
• Total Assets Turnover Ratio: 15.32% – however, this had a negative impact on the score.

Money-Flow Trends

Money flows show a positive bias. The overall inflow ratio is 54.84%, indicating strong institutional and retail interest. Notably, extra-large investor flows are positive at 58.53%, while small and medium flows are negative. This suggests that while larger investors are entering the stock, retail and mid-sized investors remain cautious. The block inflow ratio is 55.78%, reinforcing the idea that large money is favoring the stock.

Key Technical Signals

CSGP's technical indicators are overwhelmingly bullish. The technical score is 7.85, with 5 bullish signals and no bearish ones in the last 5 days. The key indicators include:

• Inverted Hammer: internal diagnostic score of 8.07 – a strong bullish reversal pattern.
• RSI Oversold: internal diagnostic score of 8.13 – signaling potential recovery from a low.
• Long Lower Shadow: internal diagnostic score of 8.17 – another strong bullish signal.

Recent chart patterns include a Long Lower Shadow and Inverted Hammer on August 13–14, 2025, suggesting a potential upward reversal. The technical side is described as "strong, cautious, and optimistic", with a volatile market but 5 bullish indicators dominating.

Conclusion

CoStar Group is in a bullish technical setup with strong internal diagnostic scores and positive inflow ratios from large investors. However, analysts are split, with mixed ratings and no clear consensus. The recent technical signals point to a potential upward trend, but with price trends already rising and analyst views diverging, traders should watch for confirmation through upcoming price action and earnings. Consider entering or tightening positions with caution as the stock remains in a volatile but technically supportive phase.