Risk/Return Remains Balanced at JLL - Analyst Blog

On Jun 18, 2014, we issued an updated research report on Jones Lang LaSalle Incorporated JLL that shortened its name to “JLL” in Mar 2014.

JLL has a broad range of real estate product and services as well as an extensive knowledge of domestic and international real estate markets, enabling it to operate as a single-source provider of real estate solutions.

In recent times, JLL announced the acquisition of Tenzing and decided to merge business operations in Sweden with immediate effect. The move would help create the country's leading commercial real estate services advisor.  Moreover, the company disclosed the buyout of 49% stake in a Kuala Lumpur-based leading transaction and advisory business – YY Property Solutions, Sdn Bhd.

Notably, the company's first-quarter 2014 adjusted earnings per share missed the Zacks Consensus Estimate, reflecting a slowdown in capital market revenues. Yet, earnings were above the year-ago quarter figure.

While an earnings miss at Jones Lang is not encouraging, we believe that the strength in its Leasing and Property & Facility Management lines and investments in recruitment, IT and data would help this stock to grow. However, market weakness and competition are anticipated to partly lower the growth tempo.

Echoing similar sentiments, over the last 30 days, the Zacks Consensus Estimate for 2014 remained constant at $7.21 per share while that for 2015 stood at $8.18 per share. The stock now has a Zacks Rank #3 (Hold).

Stocks That Warrant a Look

Investors interested in the real estate industry may also consider stocks like HFF, Inc. HF, CBRE Group, Inc. CBG and Reis, Inc. REIS. All the stocks carry a Zacks Rank #2 (Buy).