Dallas, Texas-based CBRE Group, Inc. (CBRE) operates as a commercial real estate services and investment company. Valued at $40.3 billion by market cap, the company offers property management, valuation, real estate investment, and advisory services. CBRE operates offices, data centers, multi-family, hotels, gaming, and retail sectors.
Shares of this world’s largest commercial real estate services and investment firm have outperformed the broader market considerably over the past year. CBRE has gained 69% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024, CBRE stock is up 41.4%, surpassing the SPX’s 24.7% rise on a YTD basis.
Zooming in further, CBRE’s outperformance is also apparent compared to the Real Estate Select Sector SPDR Fund (XLRE). The exchange-traded fund has gained about 21.3% over the past year. Moreover, CBRE’s double-digit returns on a YTD basis outshine the ETF’s 9.2% gains over the same time frame.
On Oct. 24, CBRE shares closed up more than 8% after reporting its Q3 results. Its adjusted EPS of $1.20 topped Wall Street expectations of $1.06. The company’s revenue was $9.04 billion, beating Wall Street forecasts of $8.98 billion. CBRE expects full-year adjusted EPS to be between $4.95 and $5.05.
For the current fiscal year, ending in December, analysts expect CBRE’s EPS to grow 28.7% to $4.94 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 10 analysts covering CBRE stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, and five “Holds.”
The configuration is consistent over the past three months.
On Oct. 29, KBW analyst Jade Rahmani maintained a “Hold” rating on CBRE with a price target of $138, implying a potential upside of 4.8% from current levels.
While CBRE currently trades above its mean price target of $127.67, the Street-high price target of $155 suggests an upside potential of 17.7%.
