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Is CBRE Group Stock Underperforming the Nasdaq?

CBRE Group, Inc. (CBRE) is a leading global provider of commercial real estate services. Headquartered in Dallas, Texas, it operates across every dimension of the industry, offering brokerage, property management, investment management, consulting, and valuation services to clients worldwide. The company has a market capitalization of $39.73 billion, making it a “large-cap” stock. 

CBRE’s shares reached a 52-week high of $174.27 on Feb. 10, but are down 24% from that level. The company’s stock declined amid investor concerns about commercial real estate fundamentals, high interest rates, and risks of an economic slowdown. Over the past three months, the stock has declined 17.4%. On the other hand, the broader Nasdaq Composite ($NASX) index is down 3.7% over the same period.

 

www.barchart.com

Over the past 52 weeks, CBRE’s stock has gained 5.3%, while the Nasdaq Composite index is up 30.3% over the same period. This year, the stock has dropped 17.6%, while the broader index has fallen 2.3%. The stock has been trading below its 50-day and 200-day moving averages since mid-February. 

www.barchart.com

On Feb. 12, CBRE reported fourth-quarter results for fiscal 2025. As the revenue figure slightly missed the analyst estimate, the stock dropped 8.8% intraday on Feb. 12. However, the company’s revenue grew by 11.8% year-over-year (YOY) to $11.63 billion, while its core EPS increased 17.7% from the prior-year period to $2.73. By the end of Q4, CBRE held about $5.70 billion in total liquidity, up from about $5.20 billion at Q3's close.​ 

Analysts are also seeing upsides in the company’s fundamentals. They expect the company’s diluted EPS to climb 26.7% YOY to $1.09 for the current quarter. For fiscal 2026, EPS is projected to surge 16.5% annually to $7.43, followed by a 15.1% growth to $8.55 in fiscal 2027.

We compare CBRE’s performance with that of another real estate services stock, CoStar Group, Inc. (CSGP), which has declined 41% over the past 52 weeks and 32.6% year-to-date. Therefore, CBRE has been the clear outperformer over these periods.

Wall Street analysts are strongly bullish on CBRE’s stock. The stock has a consensus rating of “Strong Buy” from the 13 analysts covering it. The mean price target of $186.18 implies a 40.5% upside from current levels. The Street-high price target of $200 indicates a 51% upside.


On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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