Record Traffic Growth at Homes.com Could Be a Game Changer for CoStar Group (CSGP)

• CoStar Group, Inc. recently announced it will release its third quarter 2025 financial results on October 28, 2025, followed by a management conference call to discuss results and outlook.
• Analyst sentiment has been buoyed by surging online traffic on Homes.com and the Apartments.com network's gains over key competitor Zillow Rentals, highlighting strengthened market positioning and growth prospects.
• We'll assess how this renewed analyst optimism, driven by record traffic growth at Homes.com, influences CoStar Group's investment narrative.

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CoStar Group Investment Narrative Recap

To be a CoStar Group shareholder, you need to believe the company's ambitious push into digital real estate marketplaces, especially through Homes.com and Apartments.com, can deliver sustainable user growth and help outpace competitive threats. Recent record highs in Homes.com traffic support analyst optimism and reinforce this narrative, but do not materially change the key short-term catalyst: successfully translating traffic gains into revenue while controlling costs. The biggest risk remains that aggressive marketing and hiring could inflate expenses faster than revenues, compressing margins if adoption lags. Among recent announcements, CoStar’s upcoming third quarter financial results release on October 28, 2025, stands out as the most relevant. This event will offer investors a first look at whether surging web traffic on Homes.com is translating into actual revenue momentum and improved profitability, thus directly addressing the current optimism and underlying risks tied to cost discipline and market share gains. Yet, despite strong top-line growth, investors should also factor in the contrast between record digital traffic and rising operating expenses, since ...

Read the full narrative on CoStar Group (it's free!)

CoStar Group's outlook projects $4.7 billion in revenue and $866.2 million in earnings by 2028. This reflects an annual revenue growth rate of 16.9% and an earnings increase of $762 million from current earnings of $104.2 million.

Uncover how CoStar Group's forecasts yield a $97.12 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members posted three fair value estimates for CoStar, ranging from US$58.63 to US$139.70 per share. Opinions remain split even as Homes.com’s traffic surge puts the spotlight on whether revenue will keep pace with spend, inviting you to consider several distinct viewpoints before making decisions.

Explore 3 other fair value estimates on CoStar Group - why the stock might be worth 31% less than the current price!

Build Your Own CoStar Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your CoStar Group research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free CoStar Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CoStar Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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