Barry SchwartzCoStar GroupCSGPTOP PICKJan 04, 2022
Largest provider of data on real estate transactions to brokers, agents, banks, institutional investors. Building out its US network and wants to expand globally. Owns various real estate websites. Pulled back about 20%, an opportunity. Double-digit earnings growth over next 3 years. Well run. No dividend. (Analysts’ price target is $105.17)
It sells subscription data on real estate to high net worth investors, banks, etc. They have a number of platforms but it hasn't performed very well lately because of concern for its bidding on a new platform. Has a great subscription base and is capital light. Not cheap but good long term.
(A Top Pick Jan 04/22, Up 1%) Great counter-cyclical business with the economy slowing. Apartment vacancies and distressed commercial listings start to go up. Capital light. Record results in 2022, he expects the same for 2023.
Still a buyer. Subscription software for real estate data, plus platforms for advertising vacancies. Homes.com will soon launch to compete with Zillow, etc. in NA and globally. This launch will hurt earnings a bit, but they have money in the bank from other projects. Higher interest rates shouldn't hurt too much.