Stock of the Day

December 1, 2020

CBRE Group (CBRE)

$135.72
-$5.95 (-4.2%)
Market Cap: $42.51B

About CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

CBRE Group Bull Case

Here are some ways that investors could benefit from investing in CBRE Group, Inc.:

  • CBRE Group, Inc. reported earnings per share of $2.32 for the latest quarter, exceeding the consensus estimate of $2.20, indicating strong financial performance and effective management.
  • The company has a solid return on equity of 16.96%, which reflects its ability to generate profits from shareholders' equity, a positive sign for potential investors.
  • Recent analyst upgrades have increased the price targets for CBRE Group, Inc., with Citigroup raising their target to $160.00 and Morgan Stanley to $165.00, suggesting strong future growth potential.
  • The current stock price is $143.11, which is near its 12-month high of $147.75, indicating strong market confidence and potential for further appreciation.
  • CBRE Group, Inc. has a consensus rating of "Moderate Buy" from analysts, with a majority recommending the stock, which can provide reassurance to investors considering a purchase.

CBRE Group Bear Case

Investors should be bearish about investing in CBRE Group, Inc. for these reasons:

  • The company has a relatively low net margin of 2.71%, which may indicate challenges in controlling costs and maximizing profitability compared to competitors.
  • Despite recent upgrades, Raymond James downgraded CBRE Group, Inc. from a "strong-buy" to an "outperform" rating, which could signal a more cautious outlook from some analysts.
  • Insider selling activity, such as the CFO selling 1,815 shares, may raise concerns about the confidence of company executives in the stock's future performance.
  • The stock has a high price-to-earnings (P/E) ratio of 46.02, suggesting that it may be overvalued relative to its earnings, which could deter value-focused investors.
  • With a beta of 1.39, the stock is more volatile than the market, which means it could experience larger price swings, posing a risk for more conservative investors.

Recent News