Last year existing-home sales in the U.S. jumped 5.6%, according to the National Association of Realtors. Despite the pandemic, low mortgage rates sparked strong consumer demand, driving prices through the roof (no pun intended). And so far 2021 looks like another good year for the housing market.
With its initial public offering (IPO) last week, Compass (NYSE: COMP) became the latest player to enter the real estate fray as a public company. Its business benefits from a massive market opportunity, but it also faces tough competition. So is the stock a buy? Let’s dive in.
Compass focuses on empowering real estate agents rather than replacing them. The company’s cloud-based software platform is designed to help agents build customer relationships, work more efficiently, and grow their businesses.