Shares of CBRE Group (CBRE) have been strong performers lately, with the stock up 11.2% over the past month. The stock hit a new 52-week high of $161.81 in the previous session. CBRE has gained 22.5% since the start of the year compared to the 11.4% move for the Zacks Finance sector and the 12.1% return for the Zacks Real Estate - Operations industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2025, CBRE reported EPS of $1.19 versus consensus estimate of $1.05.
For the current fiscal year, CBRE is expected to post earnings of $6.03 per share on $39.8 in revenues. This represents a 18.24% change in EPS on a 11.29% change in revenues. For the next fiscal year, the company is expected to earn $7.16 per share on $43.43 in revenues. This represents a year-over-year change of 18.66% and 9.12%, respectively.
Valuation Metrics
Though CBRE has recently hit a 52-week high, what is next for CBRE? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
CBRE has a Value Score of C. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 17X. On a trailing cash flow basis, the stock currently trades at 21.9X versus its peer group's average of 13.2X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, CBRE currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if CBRE passes the test. Thus, it seems as though CBRE shares could have potential in the weeks and months to come.
How Does CBRE Stack Up to the Competition?
Shares of CBRE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is FirstService Corporation (FSV). FSV has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. FirstService Corporation beat our consensus estimate by 17.93%, and for the current fiscal year, FSV is expected to post earnings of $5.82 per share on revenue of $5.57 billion.
Shares of FirstService Corporation have gained 11.3% over the past month, and currently trade at a forward P/E of 34.26X and a P/CF of 28.16X.
The Real Estate - Operations industry may rank in the bottom 66% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CBRE and FSV, even beyond their own solid fundamental situation.
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CBRE Group, Inc. (CBRE): Free Stock Analysis Report FirstService Corporation (FSV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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