In this article, we discuss the 5 best strong buy stocks to invest in. If you want to read about some more strong buy stocks, go directly to 15 Best Strong Buy Stocks to Invest In.
5. CBRE Group, Inc. (NYSE:CBRE)
Number of Hedge Fund Holders: 42
CBRE Group, Inc. (NYSE;CBRE) operates as a commercial real estate services and investment company worldwide. It is one of the best strong buy stocks to invest in. On September 6, CBRE Group announced that it has started a $125 million plus Series E funding round in VTS, a company specialized in commercial real estate technology and solutions. CBRE Group provided $100 million of capital and will join the VTS board of directors.
On October 20, Raymond James maintained a Strong Buy rating on CBRE Group, Inc. (NYSE:CBRE) stock and lowered the price target to $105 from $113.
Among the hedge funds being tracked by Insider Monkey, Foster City, California-based investment firm Bailard Inc. is a leading shareholder in CBRE Group, Inc. (NYSE;CBRE) with 5,807 shares worth more than $329,000.
In its Q2 2022 investor letter, Third Avenue Management, an asset management firm, highlighted a few stocks and CBRE Group, Inc. (NYSE;CBRE) was one of them. Here is what the fund said:
“Always ones to favor a company’s prospects for long-term wealth creation over its near-term earnings outlook, Fund Management opted to add to the Fund’s position in the common stock of CBRE Group, Inc. (NYSE:CBRE) during the quarter. Held in the Fund since 2020, CBRE is the largest commercial real estate services firm globally with a market-leading position in leasing, property sales, facilities management, and valuation. CBRE is also a major player in investment management (with nearly $150 billion of assets under management) and loan servicing (approximately $340 billion of commercial and multi-family loans under administration). In combination, these segments essentially act as a tax on commercial real estate activity and accounted for more than $27 billion in revenues in the 2021 fiscal year.
Fund Management recognizes that the company’s transaction-oriented business lines (e.g., leasing and sales) are likely to retract from more recent levels. Notwithstanding, CBRE’s business model has evolved significantly in recent years with additions in facilities management, investment management, and servicing leading to substantial “recurring” revenue streams. Further, the company has amongst the most “variable” cost structures in the industry, and it is also incredibly well-capitalized with a “net-cash” position. As a result, CBRE seems likely to not only remain profitable when viewed on a group-wide basis but also set to take market share through “lift-outs” from competitors and “bolt-on” acquisitions in ancillary activities (read more)
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