10 Best Real Estate and Realty Stocks To Buy According to Hedge Funds

7. Costar Group, Inc. (NASDAQ:CSGP)

Number of Hedge Fund Holders: 43

Costar Group, Inc. (NASDAQ:CSGP) is a leading provider of commercial and residential real estate information, analytics, and online marketplaces. The company has a strong mission of digitizing the world’s real estate.

CoStar has built an international network of over 27 internationally recognized brands through strategic acquisitions and consistent, organic growth. This network of brands attracts over 150 million unique monthly visitors. The firm’s financial model remains strong with more than 95% of subscription revenue and 90% renewal rates for contracts with 1 year or longer terms. The growth potential is also long-term since CoStar Group has an addressable market for global real estate information and marketplaces of over $100 billion.

Costar Group, Inc. (NASDAQ:CSGP) recently closed its 54th consecutive quarter of double-digit revenue growth. Revenue for the third quarter was up 11% year-over-year. Both net income and adjusted EBITDA climbed since the last quarter. The firm had a 28% increase year-over-year in average monthly unique visitors to 163 million in the third quarter of 2024. The businesses, Apartments.com and CoStar, also continue to deliver double-digit revenue growth.

The firm’s competitive edge in real estate and technology complimented by a successful network of brands and a solid material financial performance make it an attractive choice for investors. The stock is held by 43 hedge funds, as of Q3 2024.