CBRE Group: A Solid Performer in Commercial Real Estate
Company Overview
Dallas, Texas-based CBRE Group, Inc. (CBRE) stands out as a premier provider of commercial real estate services and investment solutions. With a market cap of $42 billion, the company operates both in the U.S. and internationally, offering support to tenants, owners, lenders, and investors across various property types, such as office, retail, industrial, and multi-family real estate.
Market Performance
CBRE fits the “large-cap” stock category, given its valuation of $10 billion or more. While the firm is currently down 3.3% from its 52-week high of $142 on November 27, it has shown resilience, with shares increasing by 15.7% over the past three months. This performance outstrips the broader Nasdaq Composite’s (NASDAQ) gain of 12.7% during the same period.
Impressive Year-to-Date Growth
Over the longer term, CBRE shares have surged by 47.5% year-to-date, which is significantly higher than NASDAQ’s 32.7% gain. In the last 52 weeks, shares rose by an impressive 59.5%, while NASDAQ managed a 35.2% return.
Remarkably, CBRE has been trading above its 50-day and 200-day moving averages since last year, with minimal fluctuations.
Quarterly Earnings Boost Investor Confidence
On October 24, shares of CBRE climbed 8.4% following a strong Q3 2024 earnings report that exceeded investor expectations. The company reported a core EPS of $1.20, surpassing consensus estimates with a year-over-year increase of 66.7%. This growth was fueled by double-digit revenue increases and significant operating efficiency across various sectors. Specifically, Advisory Services, Global Workplace Solutions, and Real Estate Investments achieved notable gains in leasing, property sales, and incentive fees. Additionally, CBRE raised its 2024 core EPS guidance to a range of $4.95 – $5.05, further encouraging investor optimism.
Comparative Performance with Rivals
In contrast, rival KE Holdings Inc. (BEKE) has not matched CBRE’s performance, seeing its shares grow by just 27.2% over the past year and 19.8% year-to-date.
Analyst Outlook
Despite the strong performance, analysts maintain a cautiously optimistic outlook for CBRE. Among the 11 analysts covering the stock, the consensus rating is categorized as “Moderate Buy.” Currently, CBRE is trading below the average price target of $141.20.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
