Real Estate Investing For Beginners: 11 Best Stocks To Buy

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

Number of Hedge Fund Holders: 42

Costar Group, Inc. (NASDAQ:CSGP) operates as a global provider of commercial and residential real estate information, analytics, and online marketplaces. The company strives on a mission to digitize the world’s real estate. To provide solutions across the real estate landscape, the firm has multiple brands including CoStar, LoopNet, Ten-X, Apartments.com, Homes.com, STR, BizBuySell, CoStar Real Estate Manager, Land.com, Thomas Daily, OnTheMarket, Business Immo, Belbex, Grecam, and BureauxLocauX.

CoStar has built the aforementioned international network of over 27 internationally recognized brands through strategic acquisitions and consistent, organic growth. This network of brands is robust as it attracts more than 100 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 more than $100 billion.

During the second quarter, the firm recorded revenue of $678 million, up 12% year-over-year. The individual businesses also showed a strong performance. Apartments.com grew revenue by 18% and CoStar by 10%, since the prior-year period. CoStar Group hit the milestone of a record 183 million monthly average unique visitors. The commercial information and marketplace businesses delivered 41% profit margins in the quarter.

The firm’s competitive edge in commercial real estate and the substantial growth that lies ahead of it make it an attractive choice for investors. The stock was held by 42 hedge funds, as of 2024’s second quarter thereby ranking on our list.

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