We think all investors should try to buy and hold high quality multi-year winners. And we’ve seen some truly amazing gains over the years. Just think about the savvy investors who held CoStar Group, Inc. (NASDAQ:CSGP) shares for the last five years, while they gained 326%. And this is just one example of the epic gains achieved by some long term investors. It’s also good to see the share price up 23% over the last quarter. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.
To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, CoStar Group managed to grow its earnings per share at 40% a year. So the EPS growth rate is rather close to the annualized share price gain of 34% per year. Therefore one could conclude that sentiment towards the shares hasn’t morphed very much. Indeed, it would appear the share price is reacting to the EPS.
We know that CoStar Group has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at CoStar Group’s financial health with this free report on its balance sheet.
A Different Perspective
We’re pleased to report that CoStar Group shareholders have received a total shareholder return of 45% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 34% per year), it would seem that the stock’s performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on CoStar Group it might be wise to click here to see if insiders have been buying or selling shares.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.