With EPS Growth And More, Jones Lang LaSalle (NYSE:JLL) Is Interesting
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Has the U.S. Real Estate Industry valuation changed over the past few years?
|Wed, 01 Dec 2021||US$140.6b||US$98.8b||US$2.9b||16.5x|
|Fri, 29 Oct 2021||US$144.3b||US$86.9b||US$2.9b||25.6x|
|Sun, 26 Sep 2021||US$132.8b||US$86.7b||US$2.9b||26.3x|
|Tue, 24 Aug 2021||US$127.6b||US$85.8b||US$2.8b||20.1x|
|Wed, 30 Jun 2021||US$154.5b||US$85.3b||US$2.9b||21.4x|
|Sat, 03 Apr 2021||US$157.5b||US$73.5b||US$1.8b||21.3x|
|Tue, 05 Jan 2021||US$149.9b||US$71.0b||US$595.6m||29.4x|
|Fri, 09 Oct 2020||US$115.6b||US$67.3b||US$637.5m||24.8x|
|Thu, 02 Jul 2020||US$43.6b||US$58.4b||US$859.9m||21.3x|
|Sun, 05 Apr 2020||US$35.8b||US$60.8b||US$1.5b||12.8x|
|Wed, 08 Jan 2020||US$59.1b||US$59.9b||US$2.1b||25.5x|
|Tue, 01 Oct 2019||US$52.7b||US$58.5b||US$2.1b||20.3x|
|Fri, 05 Jul 2019||US$51.1b||US$57.4b||US$2.5b||13.9x|
|Mon, 08 Apr 2019||US$51.1b||US$55.8b||US$2.6b||15.1x|
|Thu, 10 Jan 2019||US$43.3b||US$55.1b||US$2.5b||12.7x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 20.0x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Real Estate industry have remained mostly flat over the last three years, while revenues for these companies have grown 23% per year.This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Which industries have driven the changes within the U.S. Real Estate industry?
|Diversified Real Estate||-3.33%|
|Real Estate Development||-3.99%|
|Real Estate Services||-4.37%|
|Real Estate Operating Companies||-5.37%|
Industry PE: Investors are most optimistic about the Diversified Real Estate industry even though it's trading below its 3-year average PE ratio of 38.1x. However analysts are expecting annual earnings decline of 2.1%, which is lower than the prior year's growth of 53% per year. So the market might believe that analysts are underestimating future growth or they expect the Diversified Real Estate industry's earnings to deteriorate the least compared to other industries. Meanwhile, investors are most pessimistic about the Real Estate Development industry, which is trading below its 3-year average of 11.3x.
Forecasted Growth: Analysts are most optimistic on the Real Estate Development industry, expecting annual earnings growth of 135% over the next 5 years. This is better than its past earnings decline of 7.4% per year. Meanwhile, the Real Estate Operating Companies industry is expected to see its earnings decline by 102% per year over the next few years.
Which companies have driven the market over the last 7 days?
Jones Lang LaSalle
eXp World Holdings
Cushman & Wakefield
I am positive on CWK's recent partnerships and investments, which should create value for the company in the intermediate to long term. But Cushman & Wakefield's slowing growth is not supportive of a Buy rating. The market currently values CWK at a seemingly low forward P/E multiple of 11.0 times, but this is justified by its high financial leverage and modest ROAs & revenue growth.
The Howard Hughes Corporation is beginning to show some nice signs of recovery following pain from the COVID-19 pandemic. Management is also making some nice investments aimed at creating value for the firm in the long run. But the company still looks pricey even if we assume a full recovery takes place in the near future.
Transcontinental Realty Investors
Xinyuan Real Estate
China HGS Real Estate