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4 Reasons to Buy Jones Lang LaSalle (JLL) Stock Right Now
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Shares of Jones Lang LaSalle (JLL - Free Report) , better known as JLL, have been displaying a solid run on the bourse in the past year. The stock has appreciated 32.3% against its industry’s decline of 20.7%.
Image Source: Zacks Investment Research
A positive estimate revision trend reflects optimism for the company’s earnings growth prospects. Over the past week, the Zacks Consensus Estimate for JLL’s 2022 earnings has moved 1.4% north to $19.48 per share.
The fundamentals appear solid for this Zacks Rank #2 (Buy) stock. Also, there is enough scope for the stock’s price appreciation in the near term and any hiccup might offer a good entry point.
Robust Scale: JLL is focused on its balanced revenue growth across profitable markets. Its superior client services and strategic investments in technology and innovation are expected to help its market share increase, win relationships, and achieve notable growth and a decent cash level. Over the past years, JLL has completed several strategic acquisitions as part of its global growth strategy, thereby expanding its capabilities in several service offerings and boosting its presence in key regional markets.
Recovery in the Real Estate Market: After a dismal 2020, the acceleration of vaccination programs and government stimulus programs worldwide have kept supporting the economic rebound in 2021. Backed by the improving global economy and high levels of liquidity, the global capital markets transactions volume reached an all-time high in 2021, with investment activities jumping a whopping 54% to $1.3 trillion. Increasing cross-border capital flows and substantial levels of dry powder augur well for the capital market’s growth. With the increased competition and ample capital directed to commercial real estate, pricing is getting a boost. Also, with several commercial real estate segments showing operational resilience, liquidity and capital flows remain steady.
Given JLL’s broad range of real estate products and services and an extensive knowledge of domestic and international real estate markets, the company is well-poised to bank on favorable trends.
Rise in Outsourcing Business: JLL’s Work Dynamics segment, which includes workplace management, project management and portfolio services, offers a single and cohesive team to clients to bring together services across its Real Estate Services service lines. This segment is well-poised to benefit from favorable trends in the outsourcing business. Amid the rising trend of outsourcing real estate needs by companies, new contract wins and the expansion of services with existing clients are likely to aid JLL’s performance in the upcoming period.
Corporations are looking for the company’s wide-ranging knowledge and the breadth of its services, including sustainability. Moreover, in the post-pandemic period, this trend for organizations to outsource real estate services while progressively looking for strategic advice on reimagining their workspaces and workstyles to boost culture, attract talent and drive performance is likely to gather more strength.
Strong Balance Sheet & Superior Return on Equity: JLL is focused on maintaining balance-sheet strength and adequate liquidity to enjoy operational flexibility. The company exited 2021 with a leverage of 0.2X and $3.2 billion of liquidity. Additionally, as of Dec 31, 2021, the company’s net debt amounted to $375.9 million, marking a decrease of $111.4 million from the prior-quarter end.
JLL also enjoys investment grade ratings, such as Moody’s: Baa1 and S&P: BBB+, which highlight financial and balance-sheet strength, enabling the company to borrow at a favorable rate. JLL’s Return on Equity is 16.91% compared with the industry average of 3.38%. This highlights that the company reinvests more efficiently compared with the industry. Therefore, JLL is well-poised to sail through challenging times and capitalize on solid opportunities.
Other Key Picks
Some other key picks from the real estate operations sector include CBRE Group (CBRE - Free Report) , Cushman & Wakefield plc (CWK - Free Report) and eXp World Holdings, Inc. (EXPI - Free Report) .
CBRE Group currently sports a Zacks Rank of 1. CBRE Group’s 2022 revenues are expected to increase 22.3% year over year.
The Zacks Consensus Estimate for CBRE’s first-quarter 2022 earnings per share (EPS) has been revised 2.8% upward in the past week to $1.09.
The Zacks Consensus Estimate for Cushman & Wakefield’s 2022 EPS has moved 15.5% north to $2.39 in the past month.
Cushman & Wakefield's 2022 revenues are expected to increase 8.5% year over year. Currently, CWK carries a Zacks Rank of 1.
The Zacks Consensus Estimate for eXp World Holdings’ 2022 EPS has moved 10% north to 44 cents over the past month.
Currently, eXp World Holdings carries a Zacks Rank of 2. EXPI's 2022 revenues are expected to increase 29.4% year over year.
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4 Reasons to Buy Jones Lang LaSalle (JLL) Stock Right Now
Shares of Jones Lang LaSalle (JLL - Free Report) , better known as JLL, have been displaying a solid run on the bourse in the past year. The stock has appreciated 32.3% against its industry’s decline of 20.7%.
Image Source: Zacks Investment Research
A positive estimate revision trend reflects optimism for the company’s earnings growth prospects. Over the past week, the Zacks Consensus Estimate for JLL’s 2022 earnings has moved 1.4% north to $19.48 per share.
The fundamentals appear solid for this Zacks Rank #2 (Buy) stock. Also, there is enough scope for the stock’s price appreciation in the near term and any hiccup might offer a good entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s now delve into JLL’s strengths.
Reasons to Buy
Robust Scale: JLL is focused on its balanced revenue growth across profitable markets. Its superior client services and strategic investments in technology and innovation are expected to help its market share increase, win relationships, and achieve notable growth and a decent cash level. Over the past years, JLL has completed several strategic acquisitions as part of its global growth strategy, thereby expanding its capabilities in several service offerings and boosting its presence in key regional markets.
Recovery in the Real Estate Market: After a dismal 2020, the acceleration of vaccination programs and government stimulus programs worldwide have kept supporting the economic rebound in 2021. Backed by the improving global economy and high levels of liquidity, the global capital markets transactions volume reached an all-time high in 2021, with investment activities jumping a whopping 54% to $1.3 trillion. Increasing cross-border capital flows and substantial levels of dry powder augur well for the capital market’s growth. With the increased competition and ample capital directed to commercial real estate, pricing is getting a boost. Also, with several commercial real estate segments showing operational resilience, liquidity and capital flows remain steady.
Given JLL’s broad range of real estate products and services and an extensive knowledge of domestic and international real estate markets, the company is well-poised to bank on favorable trends.
Rise in Outsourcing Business: JLL’s Work Dynamics segment, which includes workplace management, project management and portfolio services, offers a single and cohesive team to clients to bring together services across its Real Estate Services service lines. This segment is well-poised to benefit from favorable trends in the outsourcing business. Amid the rising trend of outsourcing real estate needs by companies, new contract wins and the expansion of services with existing clients are likely to aid JLL’s performance in the upcoming period.
Corporations are looking for the company’s wide-ranging knowledge and the breadth of its services, including sustainability. Moreover, in the post-pandemic period, this trend for organizations to outsource real estate services while progressively looking for strategic advice on reimagining their workspaces and workstyles to boost culture, attract talent and drive performance is likely to gather more strength.
Strong Balance Sheet & Superior Return on Equity: JLL is focused on maintaining balance-sheet strength and adequate liquidity to enjoy operational flexibility. The company exited 2021 with a leverage of 0.2X and $3.2 billion of liquidity. Additionally, as of Dec 31, 2021, the company’s net debt amounted to $375.9 million, marking a decrease of $111.4 million from the prior-quarter end.
JLL also enjoys investment grade ratings, such as Moody’s: Baa1 and S&P: BBB+, which highlight financial and balance-sheet strength, enabling the company to borrow at a favorable rate. JLL’s Return on Equity is 16.91% compared with the industry average of 3.38%. This highlights that the company reinvests more efficiently compared with the industry. Therefore, JLL is well-poised to sail through challenging times and capitalize on solid opportunities.
Other Key Picks
Some other key picks from the real estate operations sector include CBRE Group (CBRE - Free Report) , Cushman & Wakefield plc (CWK - Free Report) and eXp World Holdings, Inc. (EXPI - Free Report) .
CBRE Group currently sports a Zacks Rank of 1. CBRE Group’s 2022 revenues are expected to increase 22.3% year over year.
The Zacks Consensus Estimate for CBRE’s first-quarter 2022 earnings per share (EPS) has been revised 2.8% upward in the past week to $1.09.
The Zacks Consensus Estimate for Cushman & Wakefield’s 2022 EPS has moved 15.5% north to $2.39 in the past month.
Cushman & Wakefield's 2022 revenues are expected to increase 8.5% year over year. Currently, CWK carries a Zacks Rank of 1.
The Zacks Consensus Estimate for eXp World Holdings’ 2022 EPS has moved 10% north to 44 cents over the past month.
Currently, eXp World Holdings carries a Zacks Rank of 2. EXPI's 2022 revenues are expected to increase 29.4% year over year.