Earnings Estimates Rising for Cushman & Wakefield (CWK): Will It Gain?

CWK

Cushman & Wakefield (CWK - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Cushman & Wakefield, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

Current-Quarter Estimate Revisions

The earnings estimate of $0.58 per share for the current quarter represents a change of +34.88% from the number reported a year ago.

Over the last 30 days, three estimates have moved higher for Cushman & Wakefield compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 8.94%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $1.60 per share, representing a year-over-year change of +97.53%.

The revisions trend for the current year also appears quite promising for Cushman & Wakefield, with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 29.52%.

Favorable Zacks Rank

The promising estimate revisions have helped Cushman & Wakefield earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Cushman & Wakefield because of its solid estimate revisions, as evident from the stock's 7.6% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

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