E-House (China) Reaches 52-Week High - Analyst Blog


E-House (China) Holdings Limited ( EJ ) is riding on the growth trajectory. Its ADSs crafted a new 52-week high, touching $14.63 during the trading session on Dec 26, and closed at 14.31, which reflects a solid return of 38.8% over the past one month. The trading volume for the session was nearly 2.8 million shares. 

Despite the strong price appreciation, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its growth potential backed by the concerted efforts in its real estate e-commerce business.

Growth Drivers 

This Chinese real estate company - E-House - reported a better-than-expected performance in the third quarter. Its solid performance was driven by significant growth in revenue that climbed 43% year over year in the quarter under review. The stock witnessed solid estimate revisions following its earnings in November.

An 85% year-over-year surge in revenues in its real estate online services, chiefly driven by growth in e-commerce revenues, contributed to this upside. Also, revenues from real estate information and consulting services escalated 47% year over year. Further, the company raised its already hiked fiscal 2013 total revenue guidance that reflects a 51% year-over-year increase.

Notably, E-House initiated the concept of real estate e-commerce in 2011 and launched its e-commerce 3.0 open transaction platform in June this year. The company has now opted for strategic cooperation with CITIC Bank Corporation Limited for the e-commerce 4.0 platform. Through these opportunistic moves, E-House is aiming at capitalizing on the growing real estate e-commerce business platform. 

Other Stocks to Consider 

Apart from E-House, the other stocks worth considering in the Real Estate Operations sector include FirstService Corp. ( FSRV ), Kennedy-Wilson Holdings, Inc. ( KW ) and Jones Lang LaSalle Incorporated ( JLL ). While FirstService and Kennedy-Wilson carry a Zacks Rank #1, Jones Lang LaSalle has a Zacks Rank #2 (Buy).

E-HOUSE CHINA (EJ): Free Stock Analysis Report

FIRSTSERVICE CP (FSRV): Free Stock Analysis Report

JONES LANG LASL (JLL): Free Stock Analysis Report

KENNEDY-WILSON (KW): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: EJ , FSRV , JLL , KW



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