Markets

CBRE Group on the Road to Recovery - Analyst Blog

A generic image of a stock chart
Credit: Shutterstock photo

On May 28, 2014, we issued an updated research report on the commercial real estate services and investment firm, CBRE Group Inc. ( CBG ).

In late April, aided by higher revenues, CBRE reported first-quarter 2014 adjusted earnings of 25 cents per share, well ahead of the Zacks Consensus Estimate of 17 cents per share and up 56% year over year. The company experienced solid contributions from the acquisition of U.K.-based Norland Managed Services Ltd.

CBRE has a broad range of real estate products and services, and an extensive knowledge of domestic and international real estate markets. Moreover, strategic in-fill acquisitions as well as larger, transformational deals such as that of Norland play a vital role in enhancing the company's geographic coverage as well as broadening its service offerings.

Moreover, improving property sales, leasing and outsourcing business augur well going forward. During the quarter, the company inked outsourcing contracts with international occupiers like Alibaba Group and Wipro Ltd. ( WIT ). Strategic investments in people and platform also stand good for the long-term perspective of this company and are expected to help in market share expansion.

Yet, regulatory limits on GSE lending, stiff competition from international, regional, and local players in the market as well as unfavorable foreign currency movement that impacts its top-line growth are our major concerns.

Over the last 30 days, the Zacks Consensus Estimate for full-year 2014 and 2015 moved north by 1.3% and 0.6% to $1.60 and $1.82, respectively. CBRE currently carries a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Investors interested in the real estate operations sector may consider stocks like HFF, Inc. ( HF ) and Reis, Inc. ( REIS ). Both these stocks sport the same rank as CBRE.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CBRE GROUP INC (CBG): Free Stock Analysis Report

HFF INC-A (HF): Free Stock Analysis Report

WIPRO LTD-ADR (WIT): Free Stock Analysis Report

REIS INC (REIS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

WIT

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More