COMP Should I Buy
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Compass Inc (COMP) is not an ideal buy for a beginner investor with a long-term strategy at this moment. The stock's recent price decline, negative technical indicators, and lack of strong proprietary trading signals suggest limited immediate upside. While there are positive catalysts such as strong revenue growth and analyst upgrades, the company's financials remain weak with negative net income and EPS. Additionally, the broader housing market challenges and mixed sentiment from analysts further reduce the attractiveness of the stock for a long-term investment.
The stock's MACD is negatively expanding (-0.291), RSI is oversold (18.585), and moving averages are converging, indicating a bearish trend. The stock is trading near its key support level (S1: 10.264), with resistance levels far above the current price. Overall, the technical indicators suggest weakness in the stock's momentum.
Hedge funds are significantly increasing their positions in the stock (193.14% increase in buying).
Analysts have recently upgraded the stock with higher price targets, citing synergies from the Anywhere Real Estate acquisition and potential for margin improvement.
Revenue growth of 23.56% YoY in Q3 2025 indicates strong top-line performance.
The stock has declined significantly (-7.86%) in the regular market session, with bearish technical indicators.
Broader housing market challenges, including affordability issues, could limit Compass's growth potential.
The company's financials remain weak, with negative net income (-$4.6M) and EPS (-0.01).
Stock trend analysis suggests a high probability of further short-term declines.
In Q3 2025, Compass reported revenue growth of 23.56% YoY to $1.846B. However, the company posted a net loss of $4.6M, albeit an improvement of 170.59% YoY. EPS remained negative at -0.01. Gross margin improved to 17.06%, up 3.71% YoY, reflecting better operational efficiency but still insufficient to achieve profitability.
Analysts are generally positive on Compass, with recent upgrades from UBS, Deutsche Bank, and JPMorgan, citing synergies from the Anywhere acquisition and potential for margin improvement. However, Goldman Sachs remains cautious, highlighting challenges in the housing market and limited visibility for growth. Price targets range from $13 to $17, with an average upside of approximately 30% from the current price.
