Should You Invest in CoStar Group (CSGP) for a Long-Term?

Conestoga Capital Advisors, an asset management company, released its “Conestoga Mid Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the Mid Cap composite returned -4.84% net of fees compared to a -0.65% return for the Russell Mid Cap Growth Index. Negative stock selection and allocation effects led to the fund’s underperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the Q3 2022 investor letter. Headquartered in Washington, the District of Columbia, CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and marketplace services to commercial real estate. On December 16, 2022, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $77.98 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -3.49%, and its shares lost 0.91% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $31.714 billion.

Conestoga Capital Advisors made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its Q3 2022 investor letter:

“CoStar Group, Inc. (NASDAQ:CSGP): The stock’s strong relative return in 3Q22 was driven by an outstanding quarterly report in late July 2022. CSGP reported 2Q22 revenues of $536 million, above consensus estimates. More importantly, the company showed extremely strong bookings of $84 million, up 66%. The strength in bookings was broad-based across its top three segments (CoStar Suite, Apartments.com and Loopnet.) The company also provided an above consensus 3Q22 outlook and raised guidance for the entire fiscal 2022 year. EBITDA guidance was raised from $585-615 million to $610-630 billion. The quarterly results and guidance continued to demonstrate the continued strength of the business model.”

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CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the third quarter, which was 47 in the previous quarter.

We discussed CoStar Group, Inc. (NASDAQ:CSGP) in another article and shared Harding Loevner’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.