CBRE Group, Inc. (CBRE), headquartered in Dallas, is the world’s largest commercial real estate services and investment firm, with operations in over 100 countries and a workforce of more than 130,000 employees. Valued at a market cap of $48.8 billion, the company provides a full suite of services, including leasing and sales advisory, capital markets, property and facilities management, valuation, investment management, and project and workplace solutions.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and CBRE fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the real estate services industry. Its diversified service portfolio, global reach, and strong brand reputation enable it to serve major corporations, institutional investors, and property owners.
CBRE recently touched its 52-week high of $167.56 on Sept. 11 and is currently trading 1.2% below the peak. CBRE has surged 24.5% over the past three months, outpacing the Real Estate Select Sector SPDR Fund’s (XLRE) marginal uptick during the same time frame.
CBRE has rallied 39.5% over the past 52 weeks, considerably outperforming XLRE’s 6.4% fall over the same time frame. However, on a YTD basis, shares of CBRE are up 26.1%, lagging behind XLRE’s 4% return.
To confirm its bullish trend, CBRE has been trading above its 50-day and 200-day moving averages since early June.
On Jul. 29, CBRE released its second-quarter earnings, and its shares rose 7.8% in the next trading session. Despite macroeconomic uncertainties, CBRE maintained strong momentum as clients continued executing their plans, driving revenues up 16.2% year-over-year to $9.8 billion, beating Street estimates by 4.1%. Core EBITDA jumped 28.9% to $658 million, while core EPS surged 45.7% to $1.19, exceeding the consensus estimates.
CBRE has outpaced its rival, Jones Lang LaSalle Incorporated’s (JLL) 23.4% increase over the past 52 weeks and 23.9% rise on a YTD basis.
Given CBRE’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 12 analysts covering it, and the mean price target of $175.20 suggests a 5.8% premium to its current price levels.
On the date of publication, Kritika Sarmah 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.
