How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in CBRE Group (CBRE) ten years ago? It may not have been easy to hold on to CBRE for all that time, but if you did, how much would your investment be worth today?
CBRE Group's Business In-Depth
With that in mind, let's take a look at CBRE Group's main business drivers.
Headquartered in Dallas, TX, CBRE Group, Inc. is a commercial real estate services and investment firm, offering a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estates in all major metropolitan areas across the globe. The services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. With more than 100,000 employees the company serves clients in more than 100 countries.
CBRE Group reports on three global business segments: Advisory Services, Global Workplace Solutions and Real Estate Investments. However, effective Jan 1, 2021, the company’s organizational structure has been realigned.
Advisory Services offers a broad range of services globally. This includes property leasing, property sales, mortgage services, property management, and valuation.
Global Workplace Solutions (GWS) offers an extensive suite of integrated, contractually-based outsourcing services to occupiers of real estate,including facilities management and project management.
Notably, effective Jan 1, 2021, transaction services were completely moved under the Advisory Services segment, while project management was entirely moved under the Global Workplace Solutions segment. Earlier transaction services and project management were divided between the Global Workplace Solutions segment and the Advisory Services segment.
Real Estate Investments includes investment management services provided globally, development services in the United States and the U.K.; and flexible office space solutions.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in CBRE Group ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2011 would be worth $3,329.99, or a gain of 233%, as of May 14, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 207.41% and gold's return of 17.51% over the same time frame.
Going forward, analysts are expecting more upside for CBRE.
Shares of CBRE Group have outperformed the industry over the past three months. Despite the pandemic’s adverse impact on property leasing and sales, the company’s better-than-expected quarterly results reflected the benefits from diversifying and expanding its resilient business in recent years. It benefited from diversification of business across property types, lines of business, geographic markets and client types along with technology investments, cost-management moves and strong balance sheet position. However, despite vaccine distributions and economic recovery in some part across the world, still high infection caseloads, limited business travel and substantial part of the work force remaining out of their offices, the operating challenges are likely to continue in the near term. Further, a competitive landscape is worrisome.
The stock is up 5.62% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021. The consensus estimate has moved up as well.
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CBRE Group, Inc. (CBRE) : Free Stock Analysis Report
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