On May 27, 2013, we reiterated our long-term recommendation on
CBRE Group Inc.
) at Neutral. The decision is based on the company's successful
execution of strategic initiatives, though stiff competition from
regional as well as international players remains a plausible
CBRE's first-quarter 2013 adjusted earnings came in at 16
cents per share, missing the Zacks Consensus Estimate by a penny
but exceeding the prior-year quarter figure of 14 cents. The
year-over-year increase is attributable to strong top-line growth
across all operating regions, especially Europe. However, a
weaker yen acted as the dampener.
Notably, the Zacks Rank #2 (Buy) stock has a broad range of
real estate products and services and an extensive knowledge of
domestic and international real estate markets, which helped it
perform well in the first quarter. Additionally, the company's
outsourcing business continued to flourish, with an increasing
clientele. This further helped CBRE to achieve a compound annual
growth rate (CAGR) of 12% since 2004 in global square feet
However, CBRE faces cut-throat competition from international,
regional, and local players in the market. Therefore, it has to
continually invest in value drivers to guard against competitive
pressure. Further, given CBRE's international presence, the
company often faces unfavorable foreign currency movements,
impacting its top-line growth.
Following the release of first-quarter 2013 results, over the
last 30 days, the Zacks Consensus Estimate for 2013 remained
stable at $1.44 per share. For 2014, it went down by 1.2% to
$1.68 per share.
Other Stocks to Consider
Better performing REITs include
Douglas Emmett Inc
). CommonWealth REIT carries a Zacks Rank #1 (Strong Buy) and
last two stocks carry a Zacks Rank #2 (Buy).
CBRE GROUP INC (CBG): Free Stock Analysis
CUBESMART (CUBE): Free Stock Analysis Report
COMMONWEALTH RE (CWH): Free Stock Analysis
DOUGLAS EMMETT (DEI): Free Stock Analysis
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