CBRE Group, Inc. (CBRE) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - CBRE Group has shown strong stock performance, with an 11.2% increase over the past month and a 22.5% gain since the start of the year, outperforming the Zacks Finance sector and the Zacks Real Estate - Operations industry [1] Financial Performance - CBRE has consistently beaten earnings estimates, reporting EPS of $1.19 against a consensus estimate of $1.05 in its last earnings report [2] - For the current fiscal year, CBRE is projected to achieve earnings of $6.03 per share on revenues of $39.8 billion, reflecting an 18.24% increase in EPS and an 11.29% increase in revenues [3] - The next fiscal year forecasts earnings of $7.16 per share on revenues of $43.43 billion, indicating a year-over-year change of 18.66% in EPS and 9.12% in revenues [3] Valuation Metrics - CBRE's current valuation metrics show a trading multiple of 26.7X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 17X [6] - On a trailing cash flow basis, CBRE trades at 21.9X versus the peer group's average of 13.2X, suggesting it is not in the top echelon from a value perspective [6] Zacks Rank and Style Scores - CBRE holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, indicating potential for future growth [7] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of B, resulting in a combined VGM Score of B [6][7] Competitive Landscape - CBRE's performance is compared to FirstService Corporation (FSV), which also has a Zacks Rank of 2 (Buy) and shows strong earnings potential with a projected EPS of $5.82 on revenues of $5.57 billion for the current fiscal year [8][9] - Despite the Real Estate - Operations industry ranking in the bottom 66% of all industries, both CBRE and FSV are expected to benefit from favorable market conditions [10]