CBRE Group Inc.
) crafted a new 52-week high, touching $25.90 during the trading
session on Dec 20. However, the stock closed the session at
$25.80, which reflects a solid year-to-date return of 26.7%. The
trading volume for the session was 2.6 million shares.
Despite the strong price appreciation, this Zacks Rank #3
(Hold) stock has plenty of upside left, given its recent
acquisitions, estimate revisions over the last 30 days and
expected long-term earnings growth of 14.97%.
CBRE Group has been actively engaged in deals for expanding
business in the U.S. and U.K. Most recently, the company
disclosed the purchase of the leading facilities cost analytics
firm, Whitestone Research Corporation. With this buyout, CBRE
Group can leverage on the widely recognized analytical tools in
the industry, CostLab - one among Whitestone's proprietary
Earlier this month, CBRE Group boosted its service offerings
in San Francisco with the purchase of commercial real estate
services firm, The CAC Group, which acts as an agent for
approximately 18 million square feet while it manages about 11
million square feet of office properties in downtown San
Francisco, the greater Bay area and Seattle (including
In the recent past, CBRE Group made a number of acquisitions
including CB Richard Ellis Carmody, KLMK Group, Alan Selby &
Partners and cracked a deal to acquire U.K.-based commercial
building technical engineering services provider, Norland Managed
Services Ltd. for boosting its services and widening its
corporate outsourcing platform in Europe.
Though CBRE Group's third-quarter 2013 results missed
expectations, its adjusted earnings grew 15% from the prior-year
quarter aided by a rise in revenues. Property sales remained the
leading growing service line in the third quarter, while leasing
growth accelerated and occupier outsourcing posted double-digit
We believe these opportunistic acquisitions would be solid
growth drivers, supplementing the company's organic expansion.
Moreover, the company's investments in people and systems augur
Estimate Revisions Show Potency
Owing to these positives, the company witnessed a rise in
estimates in recent times. Over the last 30 days, though the
Zacks Consensus Estimate for 2013 remained flat at $1.43 per
share (within the guidance range provided by CBRE Group), for
2014 it moved north 1.2% to $1.70 per share.
Investors interested in the real estate operations industry
may consider stocks like
E-House (China) Holdings Ltd
Kennedy-Wilson Holdings, Inc.
). All these carry a Zacks Rank #1 (Strong Buy).
CBRE GROUP INC (CBG): Free Stock Analysis
E-HOUSE CHINA (EJ): Free Stock Analysis
FIRSTSERVICE CP (FSRV): Free Stock Analysis
KENNEDY-WILSON (KW): Free Stock Analysis
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