Shares of CBRE Group (CBRE) have been strong performers lately, with the stock up 5.1% over the past month. The stock hit a new 52-week high of $171 in the previous session. CBRE has gained 25.1% since the start of the year compared to the 12.7% gain for the Zacks Finance sector and the 17.5% return for the Zacks Real Estate - Operations industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 23, 2025, CBRE reported EPS of $1.61 versus consensus estimate of $1.47 while it beat the consensus revenue estimate by 3.37%.
For the current fiscal year, CBRE is expected to post earnings of $6.19 per share on $39.75 in revenues. This represents a 21.37% change in EPS on a 11.15% change in revenues. For the next fiscal year, the company is expected to earn $7.22 per share on $43.17 in revenues. This represents a year-over-year change of 16.7% and 8.59%, respectively.
Valuation Metrics
While CBRE has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 A.
In terms of its value breakdown, the stock currently trades at 26.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.9X. On a trailing cash flow basis, the stock currently trades at 22.4X 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 rising earnings estimates.
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 a bit more room to run in the near term.
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 Colliers International Group Inc. (CIGI). CIGI has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Colliers International Group Inc. beat our consensus estimate by 15.44%, and for the current fiscal year, CIGI is expected to post earnings of $6.67 per share on revenue of $5.48 billion.
Shares of Colliers International Group Inc. have gained 8.2% over the past month, and currently trade at a forward P/E of 25.39X and a P/CF of 18.09X.
The Real Estate - Operations industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CBRE and CIGI, even beyond their own solid fundamental situation.
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CBRE Group, Inc. (CBRE): Free Stock Analysis Report Colliers International Group Inc. (CIGI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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