04. Newmark Group, Inc. (NASDAQ:NMRK)
Upside Potential: 32%
Average Analyst Share Price Target: $14.88
Forward P/E Ratio: 6.52
If you’re hunting for deep value in the real estate sector, Newmark Group, Inc. (NASDAQ:NMRK) deserves your attention. With a forward P/E of just 6.52 and a generous 32% upside potential based on the average analyst price target of $14.88 versus the current price of $11.26 as of the close of June 18, Newmark stands out as one of the most attractively priced stocks in the space.
Newmark Group, Inc. (NASDAQ:NMRK) is a full service commercial real estate powerhouse, offering everything from leasing and capital markets to consulting, valuation, mortgage origination, and property management. And despite a complex macro environment, the company continues to outperform.
In Q1 2025, Newmark Group, Inc. (NASDAQ:NMRK) beat expectations once again, reporting earnings per share of $0.21, topping the consensus estimate of $0.19. Revenue jumped nearly 22% to $665.5 million, driven by strength across every major segment. Most impressively, Capital Markets revenue surged 33%, as the company gained market share in investment sales, originations, and M&A advisory. Leasing revenue soared 31%, boosted by higher activity in key metros like New York, Boston, and San Francisco.
The company’s management and servicing revenues also increased more than 10%, reflecting healthy growth in recurring business lines like asset management, underwriting, and outsourced solutions. This balance between transactional and recurring revenues is a strength, especially in uncertain times.
Newmark also delivered a 40% year over year jump in adjusted EBITDA, reaching $89.2 million, while improving its EBITDA margin by 180 basis points to 13.4%. With a low net leverage ratio of 1.3x, solid cash reserves of $157 million, and $372 million authorized for share buybacks, Newmark has both the financial flexibility and capital discipline investors like to see.
While the company remains cautious on the potential impact of tariffs and rate volatility, its strong pipeline, operational momentum, and expanding footprint across verticals and geographies put it in an excellent position to grow.
With strong earnings, disciplined capital management, and significant upside potential, Newmark Group, Inc. (NASDAQ:NMRK) is one of the best value plays among real estate stocks today.