The real estate technology market is poised for significant growth, driven by rapid urbanization and technological breakthroughs. Amid this backdrop, investors could scoop up shares of fundamentally stable real estate tech stocks, FirstService Corporation (FSV), RE/MAX Holdings, Inc. (RMAX), and Jones Lang LaSalle Incorporated (JLL).

The global real estate market has experienced remarkable growth, driven by rising populations, attractive investor returns, and increasing demand for residential and commercial properties. Urbanization and the development of smart cities are further fueling the need for innovative real estate management solutions to address modern challenges effectively.

According to a report by Grand View Research, the global real estate market is projected to reach $5.85 trillion by 2030, with a CAGR of 5.2%. This expansion highlights the growing demand for advanced real estate technologies. As digitalization accelerates, cloud-based solutions are being widely adopted to improve operational efficiency and enhance customer experiences.

Cutting-edge technologies like artificial intelligence, big data analytics, and virtual reality are reshaping the real estate sector, offering transformative potential. A Coherent Market Research report projects the global real estate software market to reach $28.63 billion by 2031, growing at a CAGR of 12.6%. These advancements underline promising opportunities for investors and stakeholders alike.

Now, let us dive deep into the fundamentals of three Real Estate Services stocks, starting with #3:

Stock #3: FirstService Corporation (FSV)

Headquartered in Toronto, Canada, FSV provides residential property management and other essential property services to residential and commercial customers. The company has two segments: FirstService Residential and FirstService Brands.

On July 30, 2024, FSV’s subsidiary, Century Fire Protection, announced its acquisition of Citadel Fire Sprinkler, Inc. and Sentry Fire Protection Co., Inc. The acquisition aims to expand the company’s capabilities regarding fire suppression sprinklers and drive further growth.

On June 6, 2024, FSV’s subsidiary, Roofing Corp of America, announced the acquisition of Crowther Roofing and Cooling and Hamilton Roofing. The acquisition expands the company’s portfolio in the roofing market and could enhance consumer growth through these expanded offerings.

For the fiscal 2024 third quarter that ended September 30, FSV’s revenues increased 25% year-over-year to $1.40 billion. Its operating earnings rose 71.2% from the year-ago value to $125.90 million. Additionally, adjusted net earnings and adjusted EPS grew 31.7% and 30.4% from the prior year’s quarter to $73.77 million and $1.63, respectively.

Analysts expect FSV’s revenue and EPS for the fiscal 2025 first quarter (ending in March) to increase 12.3% and 11.4% year-over-year to $1.30 billion and $0.75, respectively. Moreover, the company surpassed consensus revenue estimates in each of the four trailing quarters, which is noteworthy.

Shares of FSV surged 10.7% over the past six months and 21.5% over the past nine months to close the last trading session at $182.36.

FSV’s POWR Ratings reflect its solid fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

FSV has an A grade for Growth and Sentiment. Within the Real Estate Services industry, FSV is ranked #3 out of 45 stocks.

In addition to the POWR Rating highlighted above, you can check FSV’s ratings for Stability, Momentum, Quality, and Value here.

Stock #2: RE/MAX Holdings, Inc. (RMAX)

RMAX is a franchisor of real estate brokerage services. It has three segments: Real Estate; Mortgage; and Marketing Funds. The company offers real estate brokerage franchising services, mortgage brokerage services, mortgage loan processing software and services and more.

On December 18, 2024, RMAX announced the launch of the RE/MAX Media Network supported by media agency Kontrol Media, positioning the company as the first real estate brand to launch a commerce media network. The launch could facilitate the company’s consumer engagement and bring in prospects for its user growth.

For the fiscal third quarter that ended September 30, 2024, RMAX’s total revenues came in at $78.48 million. Its operating income was reported to be $15.21 million, compared to a loss of $21 million in the previous year’s quarter.

Moreover, the company’s adjusted net income rose marginally year-over-year to $12.27 million, whereas its adjusted net income EPS amounted to $0.38.

Street expects RMAX’s revenue for the fiscal year ending December 2025 to increase marginally year-over-year to $312.83 million. Its FFO for the same period is forecasted to come in at $0.27. The company has also surpassed consensus revenue estimates in three of the four trailing quarters.

RMAX’s shares have surged 1.2% over the past six months and 41.7% over the past nine months to close the last trading session at $9.99.

RMAX’s robust fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.

RMAX has a B grade for Growth and Value. It is ranked #2 out of 45 stocks within the Real Estate Services industry.

To access RMAX’s Stability, Sentiment, Quality, and Momentum ratings, click here.

Stock #1: Jones Lang LaSalle Incorporated (JLL)

JLL is a commercial real estate and investment management company. It offers real estate services and is engaged in buying, building, occupying, managing, and investing in commercial, industrial, hotel, residential, and retail properties. The company also offers on-site management services.

On November 19, 2024, JLL announced a joint venture with Slate Asset Management to introduce JLL Asset Beacon, a software-as-a-service technology platform that integrates data across asset management functions to create a real-time, end-to-end view of performance.

The new offering, armed with various AI capabilities, could enhance the experience of real estate professionals and drive company prospects through user growth.

On November 12, 2024, JLL announced the reinvention of JLL Azara, an AI-powered data analysis application designed to transform how business leaders interact with corporate real estate and facilities management data.

With the increasing popularity of AI-powered tools in professional fields, the release of Azara could enhance the company’s position in the real estate tech landscape and bring in better growth prospects.

For the fiscal 2024 third quarter that ended September 30, JLL’s revenue increased 14.8% year-over-year to $5.87 billion. Its operating income rose 91.7% from the year-ago value to $228.30 million.

Additionally, adjusted net income attributable to common shareholders and adjusted EPS grew 59.9% and 59.8% from the prior year’s quarter to $170 million and $3.50, respectively.

The consensus revenue and EPS estimates of $5.61 billion and $2.17 for the fiscal 2025 first quarter (ending March 2025) exhibit a year-over-year rise of 9.6% and 22.1%, respectively. Moreover, the company has surpassed consensus EPS estimates in all four trailing quarters, which is impressive.

Shares of JLL have surged 50.9% over the past nine months and 55.1% over the past year to close the last trading session at $261.68.

JLL’s POWR Ratings reflect its strong prospects. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.

JLL has a B grade for Growth, Sentiment, and Quality. It has topped the 45-stock Real Estate Services industry.

Click here to access JLL’s ratings for Momentum, Stability, and Value.

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JLL shares were unchanged in premarket trading Monday. Year-to-date, JLL has gained 3.37%, versus a 1.96% rise in the benchmark S&P 500 index during the same period.

About the Author: Aritra_Gangopadhyay

Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success. More...

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