Real Estate Investing For Beginners: 11 Best Stocks To Buy

4. CBRE Group, Inc. (NYSE:CBRE)

Number of Hedge Fund Holders: 54

CBRE Group, Inc. (NYSE:CBRE) is a worldwide real estate services and investment firm based in Dallas, Texas. The firm operates across every dimension of commercial real estate and has the leading global market position in leasing, property sales, outsourcing, property management, and valuation. The company serves clients in over 100 countries through its employee base of more than 130,000. These clients are served through three business segments including REI (real estate investments), advisory services, and GWS (global workplace solutions). CBRE offers an integrated suite of services such as facilities, transaction and project management, and property management. investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services.

CBRE Group, Inc. (NYSE:CBRE) has the privilege to serve as the largest commercial property developer in the United States with $148 billion of assets under management within its Investment Management business. As of March 2023, the firm revealed a 53% market share as compared to 47% going to its peers. This market-leading competitive position is what makes the firm stand out from the competition. The highly resilient business lines and sufficient investment capacity are further driving forces for long-term growth.

The firm’s second quarter was marked by the outperformance of each of the three business segments While the GWS net revenue climbed 16% year-over-year and the Advisory Services net revenue grew 8.6% year-over-year, the REI segment witnessed an upturn in activity and is contracting to sell development assets at good valuations as expected to complete in the fourth quarter.

The firm has also been fueling its growth through strategic acquisitions. CBRE acquired Direct Line Global, the world’s largest global technology company across the hyperscale, co-location, and enterprise markets. This enhanced the firm’s capabilities in data center management which is rapidly growing. CBRE also announced plans to combine its project management business with its Turner & Townsend subsidiary. The combined business will be a separate business segment beginning in 2025 and will potentially impact CBRE’s future given its huge scale.

CBRE Group, Inc. (NYSE:CBRE) tends to occupy a strong leadership position in a growing industry. The stock is currently trading at 25 times its forward earnings, a discount of 34.52% to the sector. As of Q2, the company was held by 54 hedge funds.