As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including eXp World (NASDAQ: EXPI) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 5.5% while next quarter’s revenue guidance was 1.2% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.9% since the latest earnings results.
eXp World (NASDAQ: EXPI)
Founded in 2009, eXp World (NASDAQ: EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.
eXp World reported revenues of $1.10 billion, up 11.9% year on year. This print exceeded analysts’ expectations by 6.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“At eXp, we redefine what’s possible in real estate, with our agent-centric platform offering unlimited growth opportunities for agents,” said Glenn Sanford, eXp World Holdings Founder, Chairman and CEO.
The stock is down 18% since reporting and currently trades at $9.32.
Is now the time to buy eXp World? Access our full analysis of the earnings results here, it’s free.
Best Q4: The Real Brokerage (NASDAQ: REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $350.6 million, up 93.4% year on year, outperforming analysts’ expectations by 16.8%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Real Brokerage delivered the fastest revenue growth among its peers. The stock is down 11.6% since reporting. It currently trades at $4.38.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Offerpad (NYSE: OPAD)
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Offerpad reported revenues of $174.3 million, down 27.5% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 28.1% since the results and currently trades at $1.56.
Read our full analysis of Offerpad’s results here.
Zillow (NASDAQ: ZG)
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.
Zillow reported revenues of $554 million, up 16.9% year on year. This number topped analysts’ expectations by 1.1%. More broadly, it was a mixed quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates.
The stock is down 24.7% since reporting and currently trades at $63.10.
Read our full, actionable report on Zillow here, it’s free.
CBRE (NYSE: CBRE)
Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.
CBRE reported revenues of $10.4 billion, up 16.2% year on year. This result surpassed analysts’ expectations by 1.2%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Advisory Services revenue estimates.
The stock is down 15.8% since reporting and currently trades at $118.50.
Read our full, actionable report on CBRE here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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