5 Retail Stocks to Buy According to Greg Poole’s Echo Street Capital

1. CoStar Group, Inc. (NASDAQ:CSGP)

Echo Street Capital’s Stake Value: $121.7 million

Percentage of Echo Street Capital’s 13F Portfolio: 0.85%

Number of Hedge Fund Holders: 29

CoStar Group, Inc. (NASDAQ:CSGP) is an online marketplace for real estate, hospitality, and other similar sectors. This platform allows its users access to an inventory of properties, alongside other services.

As its fiscal third quarter came to an end, CoStar Group, Inc. (NASDAQ:CSGP) reported that it had earned $499 million in revenue and $0.25 in non-GAAP EPS. This pleased Wall Street by beating estimates for both. Truist raised its price target to $110 from $98 in October 2021, believing that the company is only facing temporary headwinds.

Echo Street Capital owned 1.4 million CoStar Group, Inc. (NASDAQ:CSGP) shares during Q3 2021 which were worth $121.7 million and represented 0.85% of its portfolio. During the same time period, 29 of the 867 hedge funds part of Insider Monkey’s survey owned the company’s shares.

Charles Akre’s Akre Capital Management is CoStar Group, Inc. (NASDAQ:CSGP)’s largest investor through an $840 million stake via 9.7 million shares.

Harding Loevner mentioned the company in its Q3 2021 investor letter which stated that:

“A new holding is US-based CoStar, the dominant player in information services for the commercial real estate industry and online classified ads for commercial property. Its data and analytics business, which has over 90% market share in the US, mines a proprietary database of commercial real estate that spans office, industrial, retail, multi-family, and land. Its online marketplace business, with over 50% market share, owns valuable websites including Apartments.com for apartment listings and LoopNet for business property listings. Over 80% of its revenue is recurring, as its offerings are typically integrated with the workflow of its customers: brokers, owners, developers, and property managers.”

Disclosure: None. You can also take a peek at the 10 High Dividend Stocks to Buy According to Billionaire Lee Cooperman and 10 Best High Dividend Stocks in Canada for 2022.

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