Jones Lang LaSalle Inc.
) is riding on the growth trajectory. The company, currently a
Zacks Rank #2 (Buy) holder, reported encouraging second-quarter
2014 results. Adjusted earnings came in at $1.68 per share, helped
by robust growth in fee revenue. Results comfortably exceeded the
Zacks Consensus Estimate of $1.39 and came well above the year-ago
quarter figure of $1.15.
The company which shortened its name to "JLL," reported
consolidated fee revenue increase of 18% from the prior-year
quarter to $1.1 billion, driven by growth in leasing and Property
& Facility Management revenues.
Moreover, recently, JLL announced the acquisition of CLEO
Construction Management, as part of its effort to enhance
healthcare-oriented real estate services in the West. The company
disclosed the buyout of 49% stake in a Kuala Lumpur-based leading
transaction and advisory business - YY Property Solutions Sdn Bhd.
We believe that strength in the company's Leasing and Property
& Facility Management lines, strategic acquisitions and
investments in recruitment, IT and data would act as the primary
growth drivers going forward.
Echoing similar sentiments, over the last 7 days the Zacks
Consensus Estimate for 2014 climbed 1.1% to $7.42 per share while
that for 2015 advanced 1% to $8.40 per share.
Nevertheless, though these positives bode well for the company's
future, JLL still faces stiff competition from international,
regional and local market players. Also, given the globally low
interest rate, the markets have consequently stabilized and
improved. We anticipate a recovery in the interest rates in the
medium term which may lower the growth tempo of the commercial real
estate sector and negatively impact JLL' business activities.
To gain a deeper insight into JLL, you can refer to our updated
research report issued on Aug 6, 2014.
Stocks That Warrant a Look
Investors interested in the real estate industry may also consider
stocks like FirstService Corporation (
), CBRE Group, Inc. (
) and Reis, Inc. (
). While FirstService sports a Zacks Rank #1 (Strong Buy), CBRE and
Reis hold a Zacks Rank #2 (Buy).
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JONES LANG LASL (JLL): Free Stock Analysis
CBRE GROUP INC (CBG): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
REIS INC (REIS): Free Stock Analysis Report
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