Jones Lang LaSalle Hits 52-Week High: Is It The Right Time To Buy?

Shares of Jones Lang LaSalle JLL scaled a new 52-week high of $143.16 at the end of the trading session on Nov 20. The stock closed at $143.08, reflecting a solid year-to-date return of 41.1%. The trading volume for the session was nearly 0.2 million shares.

The company reported better-than-expected earnings performance for third-quarter 2014. It also remains right on track with its acquisition investments. Therefore, despite scaling such high, we believe this Zacks Rank #2 (Buy) stock has plenty of upside left, given the improving operating fundamentals, opportunistic acquisitions and a long-term expected growth rate of 14.3%.

Growth Drivers

Aided by robust growth in fee revenues, JLL reported encouraging adjusted earnings of $2.31 per share for third-quarter 2014. Results comfortably exceeded the Zacks Consensus Estimate of $1.78 by nearly 30%, coming well above the year-ago quarter figure of $1.49. The company has also announced a 9% hike in its semi-annual dividend rate.

Consolidated fee revenue increased 19% from the prior-year quarter to $1.2 billion, driven by growth in Real estate and LaSalle Investment Management's advisory and incentive fees.

Recently, JLL stated the buyout completion of Cresa Portland, one of the leading tenant representative and corporate services providers in the city. The strategic move is aimed at enhancing JLL's presence in the Pacific Northwest region.

Apart from tenant representation services, Cresa Portland also offers proficient global portfolio management, relocation management and project management services to the technology and venture-backed growth sectors.

Echoing similar sentiments, the Zacks Consensus Estimate for both 2014 and 2015 moved north. Specifically, over the last 30 days, the estimate for 2014 climbed 4.2% to $7.94 per share while that for 2015 increased 2.2% to $8.79 per share.

Other Stocks to Consider

Investors interested in the real estate operations industry may also consider stocks like Kennedy-Wilson Holdings, Inc. KW, Reis, Inc. REIS and CBRE Group, Inc. CBG. All these stocks carry a Zacks Rank #2 (Buy).