CoStar Group Inc (CSGP · NASDAQ)

CoStar Group shares have fallen 13.6% over the past month and sit 67.7% below their 52-week high, pressure tied in part to the company's removal from the FTSE All-World Index. Fundamentals have improved, however: Q2 revenue rose to $925.0M with operating income of $76.0M, a sharp recovery from the prior quarter's $3.0M operating income, and the company has beaten EPS estimates in all of its last four reports. Revenue grew 18.4% year over year to $3.56B TTM, though profitability remains thin at a 2.1% profit margin and 0.9% ROE, with free cash flow of just $12.0M in the quarter after $103.0M of capex. The balance sheet is solid — $1.27B in cash against $1.16B of debt and a 2.21 current ratio — and the stock trades at a P/E of 152.11 with an analyst target of $37.30.