Jim Cramer Put These 12 Stocks Under the Spotlight

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

Number of Hedge Fund Holders: 56

A caller asked for Cramer’s thoughts on CoStar Group, Inc. (NASDAQ:CSGP), and this is what he had to say in response:

“Okay, normally this, and I know these guys, normally it would be good to have the analytics involving commercial real estate, but right now, commercial real estate is not doing well in this country, and we know that. So that’s their core fundamental business, and yet the stock sells at a very high price-to-earnings multiple. It does make money, though, but it’s not for me.”

CoStar Group (NASDAQ:CSGP) offers data, analytics, and online platforms that support real estate research, marketing, and transactions. The company’s tools and marketplaces serve a wide range of users involved in buying, selling, leasing, and managing property and businesses. Baron Technology Fund stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2025 investor letter:

“CoStar Group, Inc. (NASDAQ:CSGP) is the leading provider of information and marketing services to the commercial and residential real estate industry. Shares rose on an increase in the productivity of CoStar’s sales force and signs of a start to the recovery of the commercial real estate market. Mixed results around net new sales following CoStar’s significant investment in residential product Homes.com had pressured shares. We remain encouraged by growth in both traffic and brand awareness for the new product and are optimistic that the build out of a dedicated sales team as well as the potential benefits of changes in Multiple Listing Service practices will improve residential sales momentum. We also believe growth in CoStar’s non-residential business is poised to accelerate. Sales productivity has begun to improve as salespeople return to exclusively selling their core product, and we expect this to be amplified as the sales force expands by 20% or more in 2025. We believe the value of CoStar’s core non-residential business exceeds the share price, implying that investors ascribe negative value to the residential opportunity.”

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