In today’s Super Seasonals: Trade of the Week we will look at CoStar Group, Inc. (CSGP).
CoStar Group, Inc. engages in the provision of online real estate marketplaces, information, and analytics in the commercial and residential property markets.
Below gives us a market sentiment gauge on CSGP, from a performance metrics standpoint.
Why did I choose CoStar Group as a potential seasonal set up? I ran a scan within the software and it said that the Real Estate sector was the most prevalent sector of opportunities…
Then, I filtered out the Real Estate sector stocks only, and there were 4 to choose from. To keep it simple, I sorted them by Annualized Return, and CSGP came up at the top…
Below are the seasonal patterns that the software uncovered Since 1998…Avg Move Up over the 26 day trading period is +7.91%, which equated to an Annualized Return of +59.71%.
Looking at the last 5 years, the Average Move Up is +7.31%. Looking at the past 10 years, the “mean” High Point is + 8.41%.
So I am seeing a recurring theme in the overall data since 1998, and the recency bias of the past 5-10 years…which is saying that a potential expected move might be in the 7-8% range within the next 26 trading days or thereabouts…equating to a 50-60%-ish type Annualized Return.
As you likely know, there are literally dozens of solid ways to approach trading CoStar Group, Inc. (CSGP) with a bullish bias.
The decision of how to best invest in the stock or trade the options is an individualized decision, unfortunately there is no one best way. Keep in mind that seasonality is about probabilities, not certainties.
Please remember to fully understand the risk before trading anything.
It’s recommended to do your own research and consider consulting with a financial advisor before investing in any stock or options trade.
To learn more about seasonal information on other solid opportunities, click here SuperSeasonals.
Trade Smart,
Chad Shirley
