CoStar Group Inc (CSGP): Today's Featured Real Estate Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

CoStar Group ( CSGP) pushed the Real Estate industry lower today making it today's featured Real Estate laggard. The industry as a whole closed the day up 0.2%. By the end of trading, CoStar Group fell $10.54 (-6.1%) to $163.15 on heavy volume. Throughout the day, 1,138,366 shares of CoStar Group exchanged hands as compared to its average daily volume of 218,200 shares. The stock ranged in price between $162.47-$179.80 after having opened the day at $179.80 as compared to the previous trading day's close of $173.69. Other companies within the Real Estate industry that declined today were: Doral Financial ( DRL), down 4.0%, Transcontinental Realty Investors ( TCI), down 3.3%, JW Mays ( MAYS), down 2.7% and Impac Mortgage Holdings ( IMH), down 2.4%.

CoStar Group, Inc. provides information, analytics, and marketing services to the commercial real estate industry in the United States, the United Kingdom, and France. CoStar Group has a market cap of $5.0 billion and is part of the financial sector. Shares are down 5.9% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate CoStar Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates CoStar Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Nationstar Mortgage Holdings ( NSM), up 5.1%, Owens Realty Mortgage ( ORM), up 5.0%, ZipRealty ( ZIPR), up 4.5% and Griffin Land & Nurseries ( GRIF), up 3.6% , were all gainers within the real estate industry with Health Care REIT ( HCN) being today's featured real estate industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the real estate industry could consider iShares Dow Jones US Real Estate ( IYR) while those bearish on the real estate industry could consider ProShares Short Real Estate Fund ( REK).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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