CoStar Group Is Joining the S&P 500. Is This the Right Time to Buy?
The S&P 500 is one of the most prestigious indexes in the stock market. It's comprised of 500 of the largest publicly traded companies and has become a benchmark for investing. So when a company gets added to the S&P 500, it's a pretty big deal.
In early September, S&P said was that real estate tech giant CoStar Group (NASDAQ: CSGP) would replace clothing company PVH Corp (NYSE: PVH). Does that make right now the right time to buy this real estate stock?
CoStar Group also announced its plan to issue $750 million of common stock in conjunction with the move to the S&P 500, which will take place prior to the opening of trading on Monday. Share issuance is a common method for raising capital for public companies, but its dilutive effect hurts current shareholders' value.
Source Fool.com
