5 Best Real Estate Stocks To Buy

In this article, we will look at the 5 best real estate stocks to buy. If you want to explore similar stocks, you can go to Real Estate Investing For Beginners: 10 Best Stocks To Buy.

5. Anywhere Real Estate Inc. (NYSE:HOUS)

Number of Hedge Fund Holders: 21

Anywhere Real Estate Inc. (NYSE:HOUS) is a leading global provider of residential real estate services. The company operates through three segments: Anywhere Brands, Anywhere Advisors, and Anywhere Integrated Services. Shares of Anywhere Real Estate Inc. (NYSE:HOUS) have pulled back and are presenting an attractive buying opportunity. As of December 16, Anywhere Real Estate Inc. (NYSE:HOUS) is trading at a PE multiple of 4x.

As of September 19, Compass Point analyst Jason Weaver has a $13.50 price target and a Buy rating on Anywhere Real Estate Inc. (NYSE:HOUS).

At the end of the third quarter of 2022, Anywhere Real Estate Inc. (NYSE:HOUS) was a part of 21 investors’ portfolios. These funds held collective stakes of $212.5 million in the company. As of September 30, Southeastern Asset Management is the top shareholder in the company and has a position worth $85.8 million.

Here is what Longleaf Partners had to say about Anywhere Real Estate Inc. (NYSE:HOUS) in its second-quarter 2022 investor letter:

“Anywhere (previously Realogy) – Real estate brokerage franchisor Anywhere declined amid concerns over the housing market and spiking mortgage rates, in a sharp reversal from the last year. However, Anywhere is better positioned as a franchisor with franchised fees tied to home price appreciation, which should continue over the long-term. Multi-year demand fundamentals for the industry are strong with millennial home buying set to increase over the next decade. We also expect capital allocation to be another tailwind as the company is in a position to be on offense.”

4. Cushman & Wakefield plc (NYSE:CWK)

Number of Hedge Fund Holders: 21

Cushman & Wakefield plc (NYSE:CWK) is a global leader in commercial real estate services and is one of the best real estate stocks to buy now. On November 3, Cushman & Wakefield plc (NYSE:CWK) posted earnings for the fiscal third quarter of 2022. The company reported an EPS of $0.43 and generated a revenue of $2.52 billion, outperforming consensus by $85.93 million.

As of December 16, Cushman & Wakefield plc (NYSE:CWK) is trading at a PE multiple of 9x and has free cash flows of $38.2 million.

At the end of Q3 2022, 21 hedge funds were long Cushman & Wakefield plc (NYSE:CWK) and disclosed positions worth $104.35 million in the company. Of those, Harris Associates was the largest shareholder in the company and held stakes worth $86.45 million.

Here is what Vulcan Value Partners had to say about Cushman & Wakefield plc (NYSE:CWK) in its third-quarter 2022 investor letter:

“Cushman & Wakefield plc (NYSE:CWK) had good operating results in the second quarter but was a material detractor. Company management did not increase their guidance for the year, suggesting the possibility of a weak second half, and the market may be worried about that possibility. We expect economic conditions to be more challenging as we enter 2023, and we are taking a cautious approach to our valuation. The company recently authorized a share buyback for 10% of its outstanding shares, which we think is both a positive sign and an intelligent capital allocation decision. Overall, we think the company is performing well, and its results are in line with our expectations.”

3. Newmark Group, Inc. (NASDAQ:NMRK)

Number of Hedge Fund Holders: 21

Newmark Group, Inc. (NASDAQ:NMRK) is an American commercial real estate services company that serves across the globe. Newmark Group, Inc. (NASDAQ:NMRK) is undervalued and is also paying dividends. As of December 16, Newmark Group, Inc. (NASDAQ:NMRK) is trading at a PE multiple of 7x and is offering a dividend yield of 1.52%.

On October 7, Piper Sandler analyst Alexander Goldfarb revised his price target on Newmark Group, Inc. (NASDAQ:NMRK) to $10 from $12 and maintained a Neutral rating on the shares.

At the close of Q3 2022, 21 hedge funds were eager on Newmark Group, Inc. (NASDAQ:NMRK) and held stakes worth $104.76 million in the company. As of September 30, Cardinal Capital is the dominant investor in Newark Group, Inc. (NASDAQ:NMRK) and has disclosed a position worth $39.05 million.

2. Jones Lang LaSalle Incorporated (NYSE:JLL)

Number of Hedge Fund Holders: 22

Jones Lang LaSalle Incorporated (NYSE:JLL) is a multinational professional services and investment management company specializing in real estate. The company is headquartered in Chicago, Illinois, and provides services to clients in 80 countries. Jones Lang LaSalle Incorporated (NYSE:JLL) has a strong market position and strong cash flows. The company has free cash flows of $159.9 million and is placed second among the best real estate stocks to buy now. The stock is also undervalued and is trading at a PE multiple of 9x, as of December 16.

As of September 21, UBS analyst Alex Kramm has a $247 price target and Buy rating on Jones Lang LaSalle Incorporated (NYSE:JLL).

At the end of the third quarter of 2022, 22 hedge funds held stakes in Jones Lang LaSalle Incorporated (NYSE:JLL). The total value of these stakes amounted to $1.16 billion. As of September 30, Generation Investment Management is the largest shareholder Jones Lang LaSalle Incorporated (NYSE:JLL) and has stakes worth $692.46 million in the company.

Here is what Baron Funds had to say about Jones Lang LaSalle Incorporated (NYSE:JLL) in its third-quarter 2022 investor letter:

“Jones Lang LaSalle Incorporated (NYSE:JLL) is one of the leading commercial real estate services firms in the world with scale, product breadth, and leadership positions across its diversified real estate business segments.

It is currently valued at only 8 times estimated 2023 earnings per share versus a long-term average of 14 times earnings per share.

CBRE and Jones Lang LaSalle have scale, product breadth, and leadership positions across their diversified real estate business segments. They continue to gain market share and are well positioned to capitalize on ample attractive acquisition opportunities in the years ahead given strong and liquid balance sheets. Though we acknowledge that growth in certain segments of their businesses has slowed and is likely to remain pressured in the months ahead due to the global economic slowdown and higher interest rates, we believe both are attractively valued and present compelling return potential in the next few years.”

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.