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4 Reasons to Add Newmark Group Stock to Your Portfolio Now
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Newmark Group, Inc. (NMRK - Free Report) continues to build strong momentum through market share gains, strategic investments and a resilient model. Despite economic uncertainty, this real estate operations company’s solid capital market platform, servicing business and strong cash flow support its long-term growth prospects.
While NMRK has declined 0.7% over the past three months, narrower than the industry’s fall of 1.9%, analysts seem bullish about its prospects. This is indicated by the upward revision of the Zacks Consensus Estimate for EPS by 5.1% and 7.7% for 2025 and 2026, respectively, over the past two months. These estimates of $1.45 and $1.67 indicate year-over-year growth rates of 17.9% and 14.8% for 2025 and 2026, respectively.
Robust Capital Market Growth and Market Share Gains: Newmark continues to expand in capital markets, with fourth-quarter 2024 revenues rising 20%, marking five consecutive quarters of double-digit growth. Excluding fourth-quarter 2023 Signature transactions, total capital market volumes surged 113%, encompassing a 209% increase in Mortgage Brokerage and Debt Placement, 85% growth in GSE/FHA origination and a 71% rise in Investment Sales.
Between 2015 and 2024, Newmark’s U.S. investment sales market share has grown from 3.3% to 8.7%, while debt market share expanded from 1.5% to 8.9%. With $2.1 trillion in U.S. commercial and multifamily mortgage maturities expected by 2027, 25% being potentially troubled, according to Newmark Research, the company is well-positioned for increased deal flow across capital markets and related services.
Resilient Management and Servicing Revenue Growth: Newmark’s management and servicing business ensures revenue stability and strong growth. From 2017 to 2024, fees from these businesses surged 219%, while total revenues grew 190%, establishing these as Newmark’s fastest-growing service lines since its IPO. NMRK has a goal to exceed $2 billion in revenues within five years.
Solid Financial Foundation and Strong Cash Flow: Newmark maintains a strong financial foundation, backed by robust cash flow and a capital-light model. With a net leverage ratio of 1.1 (as of Dec. 31, 2024) and a solid interest coverage ratio of 7.9, the company balances growth investments with financial stability. Generating $437.6 million in operating cash flow in 2024 and facing no near-term debt maturities, Newmark’s leverage remains well below its ≤1.5X target. Additionally, its largely variable cost structure enhances flexibility in uncertain market conditions.
International Growth Fuels Long-Term Potential: Newmark's recent international expansion, including capital markets and leasing in Germany and talent acquisitions in France, the U.K. and other regions, positions it for significant growth. Non-U.S. revenues grew from 0.9% of total revenues in 2017 to 13.3% in 2024 but remained below 29-47% of peers, including CBRE Group, Inc. (CBRE - Free Report) and Jones Lang LaSalle Incorporated (JLL - Free Report) , among others, highlighting significant upside for international growth.
Ending Note on NMRK
With capital market strength, market share gains, strategic investments and a resilient model, Newmark is well-poised to ride the growth curve. Solid cash flow and a strong balance sheet support future expansion. Moreover, from a valuation perspective, Newmark Group shares present an attractive opportunity.
Currently, NMRK is trading at a forward 12-month price-to-earnings of 8.49X, which is at a discount to the industry average of 15.77X and lower than its one-year median of 9.62X. The stock is also trading at a discount to its industry peers, CBRE Group and Jones Lang LaSalle. This implies that the market is yet to fully recognize or price the company’s potential growth prospects or earnings potential.
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4 Reasons to Add Newmark Group Stock to Your Portfolio Now
Newmark Group, Inc. (NMRK - Free Report) continues to build strong momentum through market share gains, strategic investments and a resilient model. Despite economic uncertainty, this real estate operations company’s solid capital market platform, servicing business and strong cash flow support its long-term growth prospects.
While NMRK has declined 0.7% over the past three months, narrower than the industry’s fall of 1.9%, analysts seem bullish about its prospects. This is indicated by the upward revision of the Zacks Consensus Estimate for EPS by 5.1% and 7.7% for 2025 and 2026, respectively, over the past two months. These estimates of $1.45 and $1.67 indicate year-over-year growth rates of 17.9% and 14.8% for 2025 and 2026, respectively.
Assuming an increasing position in this Zacks Rank #2 (Buy) stock will be a prudent decision before the price moves significantly away from its current level. Let’s find out why. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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4 Reasons to Buy NMRK
Robust Capital Market Growth and Market Share Gains: Newmark continues to expand in capital markets, with fourth-quarter 2024 revenues rising 20%, marking five consecutive quarters of double-digit growth. Excluding fourth-quarter 2023 Signature transactions, total capital market volumes surged 113%, encompassing a 209% increase in Mortgage Brokerage and Debt Placement, 85% growth in GSE/FHA origination and a 71% rise in Investment Sales.
Between 2015 and 2024, Newmark’s U.S. investment sales market share has grown from 3.3% to 8.7%, while debt market share expanded from 1.5% to 8.9%. With $2.1 trillion in U.S. commercial and multifamily mortgage maturities expected by 2027, 25% being potentially troubled, according to Newmark Research, the company is well-positioned for increased deal flow across capital markets and related services.
Resilient Management and Servicing Revenue Growth: Newmark’s management and servicing business ensures revenue stability and strong growth. From 2017 to 2024, fees from these businesses surged 219%, while total revenues grew 190%, establishing these as Newmark’s fastest-growing service lines since its IPO. NMRK has a goal to exceed $2 billion in revenues within five years.
Solid Financial Foundation and Strong Cash Flow: Newmark maintains a strong financial foundation, backed by robust cash flow and a capital-light model. With a net leverage ratio of 1.1 (as of Dec. 31, 2024) and a solid interest coverage ratio of 7.9, the company balances growth investments with financial stability. Generating $437.6 million in operating cash flow in 2024 and facing no near-term debt maturities, Newmark’s leverage remains well below its ≤1.5X target. Additionally, its largely variable cost structure enhances flexibility in uncertain market conditions.
International Growth Fuels Long-Term Potential: Newmark's recent international expansion, including capital markets and leasing in Germany and talent acquisitions in France, the U.K. and other regions, positions it for significant growth. Non-U.S. revenues grew from 0.9% of total revenues in 2017 to 13.3% in 2024 but remained below 29-47% of peers, including CBRE Group, Inc. (CBRE - Free Report) and Jones Lang LaSalle Incorporated (JLL - Free Report) , among others, highlighting significant upside for international growth.
Ending Note on NMRK
With capital market strength, market share gains, strategic investments and a resilient model, Newmark is well-poised to ride the growth curve. Solid cash flow and a strong balance sheet support future expansion. Moreover, from a valuation perspective, Newmark Group shares present an attractive opportunity.
Currently, NMRK is trading at a forward 12-month price-to-earnings of 8.49X, which is at a discount to the industry average of 15.77X and lower than its one-year median of 9.62X. The stock is also trading at a discount to its industry peers, CBRE Group and Jones Lang LaSalle. This implies that the market is yet to fully recognize or price the company’s potential growth prospects or earnings potential.