We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Should You Add CBRE Group (CBG) to Your Portfolio?
Read MoreHide Full Article
CBRE Group, Inc. is focused on improving its business with strategic buyouts. The company recently declared the acquisition of New York City-based Floored, Inc., which is a reputed producer of advanced technology for commercial real estate. The move is likely to drive the marketing and leasing of commercial properties.
Further, in Dec 2016, the company announced the buyout of Cleveland, OH-based Skye Group, which is engaged in providing retail project management, shopping center development and tenant coordination services throughout North America. This transaction will elevate CBRE’s position in the U.S. retail real estate sector and is a good fit for its robust retail service line offerings.
Not only that, CBRE continues to depict robust fundamentals and improving prospects.
In fact, this Zacks Rank #2 (Buy) stock has risen over 15.3% in the past three months, compared with just 0.3% gain of the Zacks categorized Real Estate – Operations industry.
Why a Solid Choice?
Revenue Strength: CBRE’s top line has been exhibiting strength for the past several years. In fact, from 2003 to trailing twelve months Q3 2016, the company’s revenue have grown at a CAGR of 17%. Further, the company’s projected sales growth is 6.6% for 2017.
Moreover, strategic in-fill acquisitions have played a vital role in widening the company’s geographic coverage, as well as broadening and fortifying its service offerings. In fact, during 2015, CBRE had accomplished eight in-fill acquisitions. Further, during the first nine months of 2016, CBRE closed two in-fill acquisitions, including the acquisition of its independent affiliate in Norway and a London-based retail property advisor that specialized in the luxury goods retail sector.
In addition, the company opts for larger, transformational deals driven by macro policies. As market conditions continue to improve, we believe that these opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth.
Cash Flow Growth: CBRE enjoyed a historical cash flow growth (3–5 years) of 21.4%, which comfortably exceeded the industry’s growth of 17.0%. Also, its current cash flow growth of 21.0% is much above the industry’s rate of 4.5%.
EPS Growth: CBRE has witnessed 20.6% growth in EPS over the last three to five years against the industry’s 18.0%. Further, its projected EPS growth rate for 2016 is around 6.0%, which is far better than the 6.5% decline projected for the industry. In addition, EPS is estimated to grow at a rate of 7.0% in 2017.
Superior ROE: CBRE’s Return on Equity (ROE) ratio is 24.8% compared with the industry average of 5.1%. This indicates that the company reinvests more efficiently compared to the industry.
Forestar Group’s full-year 2016 estimates moved up significantly to $1.62 per share, over the past 60 days.
PennyMac Mortgage Investment Trust’s 2016 estimates climbed 5.1%, over the past 30 days, to $1.04 per share.
RE/MAX Holdings’ full-year 2016 estimates inched up 1.8%, over the past 60 days, to $1.69 per share.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Why Should You Add CBRE Group (CBG) to Your Portfolio?
CBRE Group, Inc. is focused on improving its business with strategic buyouts. The company recently declared the acquisition of New York City-based Floored, Inc., which is a reputed producer of advanced technology for commercial real estate. The move is likely to drive the marketing and leasing of commercial properties.
Further, in Dec 2016, the company announced the buyout of Cleveland, OH-based Skye Group, which is engaged in providing retail project management, shopping center development and tenant coordination services throughout North America. This transaction will elevate CBRE’s position in the U.S. retail real estate sector and is a good fit for its robust retail service line offerings.
Not only that, CBRE continues to depict robust fundamentals and improving prospects.
In fact, this Zacks Rank #2 (Buy) stock has risen over 15.3% in the past three months, compared with just 0.3% gain of the Zacks categorized Real Estate – Operations industry.
Why a Solid Choice?
Revenue Strength: CBRE’s top line has been exhibiting strength for the past several years. In fact, from 2003 to trailing twelve months Q3 2016, the company’s revenue have grown at a CAGR of 17%. Further, the company’s projected sales growth is 6.6% for 2017.
Moreover, strategic in-fill acquisitions have played a vital role in widening the company’s geographic coverage, as well as broadening and fortifying its service offerings. In fact, during 2015, CBRE had accomplished eight in-fill acquisitions. Further, during the first nine months of 2016, CBRE closed two in-fill acquisitions, including the acquisition of its independent affiliate in Norway and a London-based retail property advisor that specialized in the luxury goods retail sector.
In addition, the company opts for larger, transformational deals driven by macro policies. As market conditions continue to improve, we believe that these opportunistic acquisitions would serve as growth drivers, supplementing the company’s organic growth.
Cash Flow Growth: CBRE enjoyed a historical cash flow growth (3–5 years) of 21.4%, which comfortably exceeded the industry’s growth of 17.0%. Also, its current cash flow growth of 21.0% is much above the industry’s rate of 4.5%.
EPS Growth: CBRE has witnessed 20.6% growth in EPS over the last three to five years against the industry’s 18.0%. Further, its projected EPS growth rate for 2016 is around 6.0%, which is far better than the 6.5% decline projected for the industry. In addition, EPS is estimated to grow at a rate of 7.0% in 2017.
Superior ROE: CBRE’s Return on Equity (ROE) ratio is 24.8% compared with the industry average of 5.1%. This indicates that the company reinvests more efficiently compared to the industry.
Key Picks
Investors interested in the real estate industry can also consider other favorably placed stocks like Forestar Group Inc. (FOR - Free Report) , PennyMac Mortgage Investment Trust (PMT - Free Report) and RE/MAX Holdings, Inc. (RMAX - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Forestar Group’s full-year 2016 estimates moved up significantly to $1.62 per share, over the past 60 days.
PennyMac Mortgage Investment Trust’s 2016 estimates climbed 5.1%, over the past 30 days, to $1.04 per share.
RE/MAX Holdings’ full-year 2016 estimates inched up 1.8%, over the past 60 days, to $1.69 per share.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>