With a market cap of $42 billion, Dallas, Texas-based CBRE Group, Inc. (CBRE) is a leading global commercial real estate services and investment solutions provider. Operating in the United States, the United Kingdom, and internationally, the company serves tenants, owners, lenders, and investors across various property types, including office, retail, industrial, and multi-family real estate.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and CBRE Group fits this criterion perfectly. With a comprehensive suite of offerings, CBRE supports its clients in achieving their real estate objectives through innovative, integrated, and strategic solutions.
However, the commercial real estate firm is down 3.3% from its 52-week high of $142, achieved on Nov. 27. Shares of CBRE have risen 15.7% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 12.7% gain over the same time frame.
Longer term, CBRE is up 47.5% YTD, outpacing NASX's 32.7% gains. Moreover, shares of CBRE have surged 59.5% over the past 52 weeks, compared to NASX's 35.2% return over the same time frame.
CBRE has been trading above its 50-day and 200-day moving averages since last year despite few fluctuations.
Shares of CBRE climbed 8.4% on Oct. 24 due to its strong Q3 2024 earnings report, which exceeded expectations. The company reported core EPS of $1.20, surpassing the consensus estimate and marking a 66.7% year-over-year increase, driven by double-digit revenue growth and significant operating leverage across its business segments. Advisory Services, Global Workplace Solutions, and Real Estate Investments all posted robust performance, with notable increases in leasing, property sales, and incentive fees. Furthermore, CBRE raised its 2024 core EPS guidance to $4.95 - $5.05, fueling investor optimism.
In comparison, rival KE Holdings Inc. (BEKE) has underperformed CBRE. Shares of KE Holdings have gained 27.2% over the past 52 weeks and 19.8% on a YTD basis.
Despite CBRE’s strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 11 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $141.20.
