Cushman & Wakefield is the IBD Stock Of The Day, as the U.K.-based commercial real estate services firm has posted three straight quarters of triple-digit earnings growth. CWK stock is nearing a buy point.
Cushman & Wakefield represents real estate clients in buying, selling, financing, leasing, managing and valuing assets. The company also offers real estate research services, portfolio analysis and site selection services. It has 400 offices in 70 countries.
On Jan. 1, Cushman & Wakefield's global president, John Forrester, took over as CEO.
Cushman & Wakefield is a major player in the $16 trillion U.S. commercial real estate market. The company weathered some turbulent times in commercial real estate during the pandemic.
Get Lean, Get Bigger
Part of its strategy has been to significantly reduce costs, a key component of its multiyear transformation to become a "leaner, more efficient and agile organization," Forrester said in an earnings call with investors on Nov. 4, 2021.
"We're on track to achieve $125 million of permanent savings this year and $250 million permanent savings in total over the past two years," he said.
Another aspect of that strategy has been making acquisitions that expand its services and geographic reach.
In the third quarter, Cushman & Wakefield announced strategic partnerships with two industry leaders, as it continues to build out its platform and service offerings.
It entered into an agreement to acquire a 40% stake in Greystone's Agency, Federal Housing and Administration, and Servicing businesses, which will round out its service offering to investors in the U.S. multifamily sector, said outgoing CEO Brett White.
Cushman & Wakefield also formed an exclusive strategic partnership with WeWork.
"Through this partnership, we will help scale WeWork's tenant experience platform from beyond just their branded centers into the rest of the office market, starting with our clients," White said.
Cushman & Wakefield Earnings
Cushman & Wakefield earnings skyrocketed 200% vs. a year earlier in the third quarter. Revenue grew 21% to 2.33 billion.
Consolidated fee revenue for Q3 totaled $1.7 billion, improving 27% compared with the same period a year before. Brokerage revenue, including leasing and capital markets businesses, was up 64% vs. a year ago, and up 10% vs. 2019 pre-Covid levels.
"We continue to observe a sustainable recovery in capital markets and non-office leasing," Forrester said. "As expected, office leasing continues to lag other sectors, but we are continuing to see green shoots emerge each quarter."
CWK Stock
Shares reversed lower, closing down 0.9% to 20.75 on the stock market today. CWK stock is in an ascending base with a 22.87 buy point, according to MarketSmith chart analysis. Shares have held above their 50-day line.
Its relative strength line is trending upward and near all-time highs. CWK has an RS Rating of 94 out of a best-possible 99. The stock's EPS Rating is 81.
With a Composite Rating of 95, Cushman & Wakefield ranks No. 5 in IBD's real estate development and operations group.
Rival commercial real estate services firms CBRE Group rose 0.8% on Thursday, while Jones Lang LaSalle edged up 0.5%, both closing far off highs. Both are modestly below their 50-day lines.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
