5 Best Real Estate Stocks To Buy

1. CBRE Group Inc (NYSE:CBRE)

Number of Hedge Fund Holders: 47

CBRE Group Inc (NYSE:CBRE) is a global commercial real estate services and investment firm. The company provides services such as property sales and leasing, facilities and project management, and valuation and advisory services. CBRE Group Inc (NYSE:CBRE) has more than 100,000 employees worldwide and is one of the largest commercial real estate services firm in the world by revenue. CBRE Group Inc (NYSE:CBRE) is placed high among the best real estate stocks to buy now.

As of September 21, UBS analyst Alex Kramm has a $86 price target and Neutral rating on CBRE Group Inc (NYSE:CBRE).

CBRE Group Inc (NYSE:CBRE) has free cash flows of over $1.7 billion and is trading at a PE multiple of 12x, as of December 16.

At the close of the third quarter of 2022, 47 hedge funds were long CBRE Group Inc (NYSE:CBRE) and disclosed positions worth $2.06 billion in the company. Of those, Harris Associates was the top investor in the company and held stakes worth $829.19 million.

Here is what Baron Funds had to say about CBRE Group, Inc. (NYSE:CBRE) in its third-quarter 2022 investor letter:

“CBRE Group, Inc. (NYSE:CBRE) is the largest commercial real estate services firm in the world. It maintains a #1 worldwide market share position in each of its key business lines and has a pristine balance sheet. It is currently valued at only 13 times estimated 2023 earnings per share versus a long-term average valuation multiple of 15 to 16 times earnings per share.

In the most recent quarter, we trimmed the Fund’s position in CBRE Group, Inc., the largest commercial real estate services firm in the world. Though we believe segments of its business are currently facing headwinds (e.g., leasing and property sales), we remain bullish on the long-term growth prospects for CBRE. CBRE has scale, product breadth, and leadership positions across its diversified real estate business segments. The company continues to gain market share and is well positioned to capitalize on ample attractive acquisition opportunities in the years ahead given its strong and liquid balance sheet.

Though near-term growth in certain segments of its business is likely to moderate in the months ahead due to the global economic slowdown and higher interest rates, we believe CBRE shares are now attractively valued and present compelling return potential over the next few years.”

You can also take a look at 10 Best Tobacco Stocks To Buy and 16 Large-Cap Stocks with Insider Buying.