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CBRE Group (CBRE - Free Report) is a global commercial real estate services and investment firm, headquartered in Dallas, Texas. It stands as the largest commercial real estate services company in the world. CBRE offers a broad range of services, including property management, investment management, and appraisal. The company serves clients across multiple sectors, including healthcare, retail, residential, and industrial. Known for its extensive market knowledge and expertise, CBRE operates through a network of offices in key cities around the globe, providing comprehensive solutions to real estate investors, owners, and occupiers.
Although a very large and impressive firm, CBRE Group has not avoided the troubles in the commercial real estate market, an issue most investors have become all too familiar with in the last year. Fortunately for them, as more of a service provider than an investor they have been a bit less exposed to the issues in the industry, however they have been hit, nonetheless.
Because of these developments CBRE Group has received consistent earnings estimate downgrades over the past year, giving it a Zacks Rank #5 (Strong Sell) rating. I think until earnings revisions begin to trend higher again, or the commercial real estate market finds a bottom, investors should avoid CBRE.
Image Source: Zacks Investment Research
Earnings Estimates
Analysts following CBRE Group have unanimously downgraded the stock, with the current quarter seeing some significant revisions lower. Current quarter earnings estimates have been lowered by -18.8% and are forecast to fall -42.5% YoY to $0.65 per share. FY23 earnings estimates have been revised lower by -10.7% and are projected to decline -31.1% YoY to $3.92 per share.
The company will manage to keep sales growth positive though, with current quarter expected to grow 1.35% YoY to $7.6 billion and FY23 to grow 2.2% to $31.5 billion.
Image Source: Zacks Investment Research
Technical Breakdown
Further bearish confirmation can be seen on CBRE Group’s stock chart. After trading lower all of 2022 and then trading in a wide consolidation all year, the price has moved below the key level of support at $66.50. If CBRE holds below this level, and closes the week and month down here, it could signal further downside.
Image Source: TradingView
Bottom Line
While CBRE Group is likely to eventually recover from this downtrend in stock price and earnings estimates, there may have to be some sort of event or catalyst to end it. For the time being, with interest rates as high as they are, the real estate market is going to be challenged, and CBRE will have to remain vigilant to stick around in this environment.
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Bear of the Day: CBRE Group (CBRE)
CBRE Group (CBRE - Free Report) is a global commercial real estate services and investment firm, headquartered in Dallas, Texas. It stands as the largest commercial real estate services company in the world. CBRE offers a broad range of services, including property management, investment management, and appraisal. The company serves clients across multiple sectors, including healthcare, retail, residential, and industrial. Known for its extensive market knowledge and expertise, CBRE operates through a network of offices in key cities around the globe, providing comprehensive solutions to real estate investors, owners, and occupiers.
Although a very large and impressive firm, CBRE Group has not avoided the troubles in the commercial real estate market, an issue most investors have become all too familiar with in the last year. Fortunately for them, as more of a service provider than an investor they have been a bit less exposed to the issues in the industry, however they have been hit, nonetheless.
Because of these developments CBRE Group has received consistent earnings estimate downgrades over the past year, giving it a Zacks Rank #5 (Strong Sell) rating. I think until earnings revisions begin to trend higher again, or the commercial real estate market finds a bottom, investors should avoid CBRE.
Image Source: Zacks Investment Research
Earnings Estimates
Analysts following CBRE Group have unanimously downgraded the stock, with the current quarter seeing some significant revisions lower. Current quarter earnings estimates have been lowered by -18.8% and are forecast to fall -42.5% YoY to $0.65 per share. FY23 earnings estimates have been revised lower by -10.7% and are projected to decline -31.1% YoY to $3.92 per share.
The company will manage to keep sales growth positive though, with current quarter expected to grow 1.35% YoY to $7.6 billion and FY23 to grow 2.2% to $31.5 billion.
Image Source: Zacks Investment Research
Technical Breakdown
Further bearish confirmation can be seen on CBRE Group’s stock chart. After trading lower all of 2022 and then trading in a wide consolidation all year, the price has moved below the key level of support at $66.50. If CBRE holds below this level, and closes the week and month down here, it could signal further downside.
Image Source: TradingView
Bottom Line
While CBRE Group is likely to eventually recover from this downtrend in stock price and earnings estimates, there may have to be some sort of event or catalyst to end it. For the time being, with interest rates as high as they are, the real estate market is going to be challenged, and CBRE will have to remain vigilant to stick around in this environment.