Q3 Earnings Outperformers: Zillow (NASDAQ:ZG) And The Rest Of The Real Estate Services Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Zillow (NASDAQ:ZG) and its peers.
Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.
The 14 real estate services stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 7.8% below.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Zillow (NASDAQ:ZG)
Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ:ZG) is the leading U.S. online real estate marketplace.
Zillow reported revenues of $581 million, up 17.1% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 26.6% since reporting and currently trades at $70.98.
Is now the time to buy Zillow? Access our full analysis of the earnings results here, it’s free.
Best Q3: The Real Brokerage (NASDAQ:REAX)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
The Real Brokerage reported revenues of $372.5 million, up 73.5% year on year, outperforming analysts’ expectations by 7.4%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The Real Brokerage achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7.6% since reporting. It currently trades at $5.21.
Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.
Slowest Q3: Anywhere Real Estate (NYSE:HOUS)
Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.
Anywhere Real Estate reported revenues of $1.54 billion, down 3.1% year on year, falling short of analysts’ expectations by 5.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Anywhere Real Estate delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.2% since the results and currently trades at $3.95.
Read our full analysis of Anywhere Real Estate’s results here.
JLL (NYSE:JLL)
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $5.87 billion, up 14.8% year on year. This result beat analysts’ expectations by 4.4%. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
The stock is down 5.7% since reporting and currently trades at $263.99.
Read our full, actionable report on JLL here, it’s free.
Cushman & Wakefield (NYSE:CWK)
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE:CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Cushman & Wakefield reported revenues of $2.34 billion, up 2.5% year on year. This result lagged analysts' expectations by 1.8%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.
The stock is up 5.4% since reporting and currently trades at $13.84.
Read our full, actionable report on Cushman & Wakefield here, it’s free.
Market Update
In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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