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5 Reasons to Add CBRE Group Stock to Your Portfolio Now

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Key Takeaways

  • CBRE's shares jumped 24.8% in three months, beating the industry's 18.4% rise.
  • Acquisition of Industrious in January 2025 led to establish a new Building Operations & Experience segment.
  • CBRE held $4.7B liquidity and a 1.47X net leverage ratio as of June 30, 2025.

CBRE Group’s (CBRE - Free Report) wide array of real estate products and services offerings, strategic buyouts, healthy outsourcing business, technology investments and solid balance sheet are expected to drive its performance.

Analysts also seem bullish on this stock, with the Zacks Consensus Estimate for CBRE Group’s current-year earnings per share (EPS) having increased 6 cents over the past month to $6.09.

Shares of this Zacks Rank #2 (Buy) company have risen 24.8% over the past three months, outperforming its industry’s growth of 18.4%. Given the strength of its fundamentals, there seems to be additional room for growth.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Factors That Make CBRE Group a Solid Pick

Market-Leading Position & Resilient Business Model: CBRE, the largest commercial real estate services and investment firm (based on 2024 revenues), holds extensive knowledge of domestic and international real estate markets. This helps it enjoy a robust scale. A market-leading position gives it a competitive edge in navigating through any challenging situations and capitalizing on compelling opportunities.

Over the past few years, CBRE has opted for a better-balanced and more resilient business model. In pursuit of this, the company has shifted toward a more diversified and contractual revenue base, which enables it to tide over market disruptions and other economic uncertainties. In the second quarter of 2025, the company’s resilient businesses generated net revenue growth of 17%, surpassing the 15% increase in its transactional businesses.

Strategic Acquisitions: To widen its global reach and expand, and reinforce service offerings, CBRE Group has been focusing on strategic in-fill acquisitions by acquiring regional or specialty firms and independent affiliates. The company opts for larger, transformational deals driven by macro policies. In January 2025, CBRE Group acquired Industrious and established a new BOE segment.

In 2024, the company completed nine in-fill business acquisitions for approximately $315 million in cash and non-cash consideration. These opportunistic acquisitions and strategic investments are likely to serve as growth drivers, supplementing its organic growth.

BOE Segment Growth: With occupiers of real estate increasingly opting for outsourcing and relying on the expertise of third-party real estate specialists to optimize their operations, CBRE Group’s Building Operations & Experience (“BOE”) segment is well-placed to benefit.   For the second quarter of 2025, the BOE segment delivered 18.7% revenue growth year over year. We estimate the BOE segment’s total revenues to increase 14.4% in 2025.

Solid Technological Investments: The company’s technology platform helps it develop and deliver superior analytical, research and client service tools to meet diverse client needs. Strategic reinvestment in its business, specifically on the technology front, is expected to differentiate CBRE Group from the peers.

Balance Sheet & ROE Strength: CBRE had $4.7 billion in total liquidity as of June 30, 2025. The company’s net leverage ratio was 1.47X as of the same date, significantly less than CBRE’s primary debt covenant of 4.25X. With ample financial flexibility, CBRE is well-positioned to capitalize on growth opportunities.

Its trailing 12-month return on equity is 18.89% compared with the industry’s average of 1.15%. This indicates that the company is more efficient in using shareholders’ funds than its peers.

Other Stocks to Consider

Some other top-ranked stocks from the real estate operations sector are Newmark Group (NMRK - Free Report) and Cushman & Wakefield (CWK - Free Report) .

The consensus estimate for NMRK’s 2025 EPS has increased 11 cents over the past two months to $1.55. NMRK sports Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CWK’s current-year EPS has increased 2 cents over the past month to $1.17. CWK carries a Zacks Rank #2 at present.


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