The company serves real estate developers, owners and occupiers, with more than 16,000 professionals operating from more than 400 offices on six continents. It operates in the United States, Europe, Asia, Africa, Australia and even the Middle East.
Newmark offers a complete suite of services designed to provide clients with solutions for every phase of owning or occupying a commercial property. That includes strategic planning, design, construction, financing, underwriting, leasing, management, appraisal services and tax advice.
It serves virtually every type of commercial real estate operation, including apartments, offices, hospitals, senior housing, data centers, industrial centers, entertainment centers, local and regional malls, warehouses, gaming and leisure, self-storage and even vineyards and wineries.
Hearing this, most investors might assume that Newmark is a multinational giant, perhaps even a member of Fortune’s Global 100. Yet, it is a small company with a market cap of just $2.7 billion. Revenue is growing 35% year over year. And the company has beaten Wall Street’s consensus earnings estimate by an average of 33% over the last four quarters.
Chairman Howard Lutnick recently purchased 277,000 shares — an investment of $3 million. This was not his first trip to the trough. He bought over a half million shares in February at up to $17.36 a share. He now owns over eight million shares.
In addition to being chairman of Newmark, Lutnick is chairman and CEO of BGC Partners (a global brokerage) and chairman and CEO of Cantor Fitzgerald, one of the world’s leading financial services firms. He recognizes that Newmark continues to outpace the industry and capture market shares.
Going forward, Newmark plans to take a number of steps to reduce share issuance. That’s a big plus, since a decreasing share count increases the growth in earnings per share. And growth in earnings per share is the fuel that propels share prices higher, especially an inexpensive stock like this one.
Newmark sells for less than three times trailing earnings and less than six times prospective earnings. (The average company in the S&P 500 sells for 16 times prospective earnings.)
Newmark is a fast-growing, superbly run company and a world leader in its industry, and recent telltale buying by this knowledgeable insider makes this a compelling opportunity. So, pick up Newmark Group at market. And place a sell stop at $8.50 for protection.