Shares of Jones Lang LaSalle JLL, better known as JLL, have appreciated 12.1% in the past three months, against the industry’s decline of 0.3%. The company is expected to gain from the continued strength of its resilient lines of business and favorable outsourcing trends. JLL has also benefited from its cost management efforts. Its data-driven and experiential technology platform is leading to increased client engagements.
A positive estimate revision trend reflects optimism about the company’s earnings growth prospects. Over the past two months, the Zacks Consensus Estimate for JLL’s 2025 EPS has moved north to $17.34 per share. Also, estimates for 2026 EPS have moved up over the same period.
The fundamentals appear solid for this Zacks Rank #2 (Buy) stock. Also, there is enough scope for the stock’s price appreciation in the near term, and any hiccup might offer a good entry point.
Image Source: Zacks Investment ResearchLet’s now delve into JLL’s strengths.
Reasons to Buy JLL Stock
Robust Scale: JLL is focused on balanced revenue growth across profitable markets. Its superior client services and strategic investment in technology and innovation are expected to help grow market share and win relationships. In fact, strategic investments made on the technology front helped the company navigate the challenging times effectively. Its data-driven and experiential technology platform is providing a competitive edge and is leading to increased client engagements, which is encouraging.
Moreover, JLL's diversified and resilient platform, along with cost optimization efforts, is expected to support its adjusted EBITDA. The company increased its 2025 adjusted EBITDA guidance to a range of $1.375-$1.45 billion compared with the prior guided range of $1.30-$1.45 billion. We expect fee revenues to increase 7.4% and 1.6% in 2025 and 2026, respectively. We also expect adjusted EBITDA to rise 16.4% in 2025, 17.1% in 2026 and 13.2% in 2027 on a year-over-year basis.
Rise in Outsourcing Business: JLL’s Real Estate Management Services segment offers a single and cohesive team to clients, bringing together services across its service lines, and is well-poised to benefit from favorable trends in the outsourcing business. Corporations are looking for the company’s wide-ranging knowledge and the breadth of its services, including sustainability. Moreover, in the post-pandemic period, this trend for organizations to outsource real estate services while progressively seeking strategic advice on reimagining their workspaces and workstyles to boost culture, attract talent and drive performance has gathered more strength.
Amid the rising trend of outsourcing real estate needs by companies, new contract wins and the expansion of services with existing clients are likely to aid JLL’s performance in the upcoming period. The company remains confident in the long-term trajectory of the Workplace Management business, as its sales pipeline is strong and contract renewal rates are stable. We expect a year-over-year increase of 11.3% in total revenues for JLL’s Real Estate Management Services segment in 2025.
Strong Balance Sheet & Superior Return on Equity: JLL is focused on maintaining balance-sheet strength and adequate liquidity to enjoy operational flexibility. The company exited the third quarter of 2025 with $3.54 billion of corporate liquidity and net leverage of 0.8X compared with 1.2X reported in the prior quarter. As of Sept. 30, 2025, it enjoyed investment-grade ratings of Baa1 from Moody’s and BBB+ from S&P Global, which highlight the financial and balance-sheet strength, enabling the company to borrow at a favorable rate.
JLL’s return on equity is 11.10% compared with the industry average of 1.60%. This highlights that the company reinvests more efficiently compared with the industry. With a solid balance sheet and financial flexibility, JLL is well-poised to navigate through any challenging times and capitalize on solid opportunities.
Other Stocks to Consider
Some other top-ranked stocks from the broader real estate sector are Prologis PLD and First Industrial Realty Trust FR. Both Prologis and First Industrial Realty Trust carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Prologis’ 2026 funds from operations (FFO) per share is pegged at $6.11, which indicates year-over-year growth of 5.16%.
The consensus estimate for First Industrial Realty Trust’s 2026 FFO per share stands at $ 3.14, which calls for an increase of 6.02% from the year-ago period.
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Prologis, Inc. (PLD): Free Stock Analysis Report Jones Lang LaSalle Incorporated (JLL): Free Stock Analysis Report First Industrial Realty Trust, Inc. (FR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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