Earnings Estimates Rise Higher for Cushman & Wakefield (CWK): Time to Buy?

Investors may want to bet on Cushman & Wakefield (CWK) as earnings estimates for this company have shown a solid improvement of late. The stock has already gained solid near-term price momentum, and that trend could continue with further improving earnings prospects.

Analysts’ growing optimism about this company’s earnings prospects is driving estimates higher, which should be reflected in its share price. After all, empirical research shows a strong correlation between earnings estimate revision trends and short-term stock price movements. This insight is at the heart of our stock rating tool — the Zacks Rank.

The five-tier Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive track record of externally audited performance, with Zacks #1 ranked stocks generating an average return annual +25% since 2008.

For Cushman & Wakefield, there was strong consensus among analysts covering the increase in earnings estimates, which helped boost consensus estimates for the next quarter and full year.

Estimate revisions for the current quarter

For the current quarter, the company is expected to earn $0.62 per share, which represents a change of +44.19% from the number reported a year ago.

Over the past 30 days, an estimate has risen higher for Cushman & Wakefield compared to no negative revisions. As a result, the Zacks Consensus Estimate rose 166.67%.

Estimate revisions for the current year

For the full year, the company is expected to earn $1.71 per share, representing a year-over-year change of +111.11%.

There has been an encouraging trend in terms of revisions to estimates for the current year as well. In the past month, an estimate rose for Cushman & Wakefield to no negative revision. This pushed the consensus estimate 6.51% higher.

Favorable Zacks Rank

Due to promising estimate revisions, Cushman & Wakefield currently holds a Zacks Rank #1 (Strong Buy). Zacks Rank is a tried and tested valuation tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see today’s full list of Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with a Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Conclusion

While strong revisions to estimates for Cushman & Wakefield have attracted decent investment and pushed the stock up 10.5% over the past four weeks, it may still be on the rise. Therefore, you can consider adding it to your portfolio immediately.

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