Jones Lang LaSalle Incorporated (NYSE:JLL): Is It A Smart Long Term Opportunity?

In December 2018, Jones Lang LaSalle Incorporated (NYSE:JLL) released its earnings update. Generally, it seems that analyst forecasts are fairly optimistic, with earnings expected to grow by 6.2% in the upcoming year relative to the past 5-year average growth rate of 0.5%. Presently, with latest-twelve-month earnings at US$484m, we should see this growing to US$514m by 2020. Below is a brief commentary on the longer term outlook the market has for Jones Lang LaSalle. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.

See our latest analysis for Jones Lang LaSalle

What can we expect from Jones Lang LaSalle in the longer term?

The 7 analysts covering JLL view its longer term outlook with a positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

NYSE:JLL Past and Future Earnings, April 26th 2019
NYSE:JLL Past and Future Earnings, April 26th 2019

This results in an annual growth rate of 7.3% based on the most recent earnings level of US$484m to the final forecast of US$587m by 2022. This leads to an EPS of $12.91 in the final year of projections relative to the current EPS of $10.64. Analysts are predicting earnings growth to outpace revenue by the end of 2022, resulting in a margin expansion from 5.3% to 5.8%.

Next Steps:

Future outlook is only one aspect when you’re building an investment case for a stock. For Jones Lang LaSalle, I’ve compiled three pertinent aspects you should look at:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
  2. Valuation: What is Jones Lang LaSalle worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Jones Lang LaSalle is currently mispriced by the market.
  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Jones Lang LaSalle? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.