CBRE Group Sees Strong Performance Amid Market Growth
Dallas, Texas-based CBRE Group, Inc. (CBRE) is a leading commercial real estate services and investment company. With a market capitalization of $40.3 billion, it provides a range of services, including property management, valuation, real estate investment, and advisory services across various sectors such as offices, data centers, multi-family housing, hotels, gaming, and retail.
Stock Gains Outpace Broader Market
Over the past year, CBRE’s shares have significantly outperformed the broader market. The company’s stock surged by 69%, compared to a 31.1% increase in the S&P 500 Index ($SPX). In 2024 alone, CBRE’s stock has risen 41.4%, surpassing the SPX’s 24.7% gain year-to-date.
Comparison with Real Estate Sector
When examining CBRE’s performance against the Real Estate Select Sector SPDR Fund (XLRE), it becomes clear that CBRE continues to shine. While the ETF gained roughly 21.3% over the last year, CBRE has achieved even greater double-digit returns year-to-date with a 9.2% rise.
Strong Q3 Results Drive Stock Growth
On October 24, CBRE shares jumped over 8% following the release of its third-quarter results. The company reported an adjusted earnings per share (EPS) of $1.20, surpassing analysts’ expectations of $1.06. Revenue reached $9.04 billion, exceeding Wall Street’s forecast of $8.98 billion. Looking ahead, CBRE anticipates a full-year adjusted EPS between $4.95 and $5.05.
Positive Earnings Outlook
For the current fiscal year ending in December, analysts predict a robust EPS growth of 28.7%, estimating it at $4.94 on a diluted basis. CBRE has a solid history of surpassing earnings expectations, having beaten the consensus estimate in each of the last four quarters.
Analyst Recommendations
A review of 10 analysts covering CBRE indicates a consensus rating of “Moderate Buy,” composed of five “Strong Buy” ratings and five “Holds.” This outlook has remained consistent over the past three months.
On October 29, KBW analyst Jade Rahmani reiterated a “Hold” rating for CBRE, setting a price target of $138, suggesting a potential upside of 4.8% from current levels. Though CBRE is trading above its average price target of $127.67, the highest target on the Street is $155, indicating an upside potential of 17.7%.
On the date of publication, Neha Panjwani did not have any positions in the mentioned securities. All information provided is for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here.
The views expressed here are those of the author and do not necessarily reflect those of Nasdaq, Inc.
