As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - real estate services industry, including RE/MAX (NYSE:RMAX) and its peers.
The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models.
The 14 consumer discretionary - real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 1.8% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.6% since the latest earnings results.
Weakest Q1: RE/MAX (NYSE:RMAX)
Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories.
RE/MAX reported revenues of $70.23 million, down 5.7% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
The market seems disappointed with the results as the stock is down 15.1% since reporting and currently trades at $9.40.
Read our full report on RE/MAX here, it’s free.
Best Q1: Howard Hughes Holdings (NYSE:HHH)
Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.
Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year, outperforming analysts’ expectations by 20.4%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
Howard Hughes Holdings achieved the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $67.22.
Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.
Offerpad (NYSE:OPAD)
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Offerpad reported revenues of $80.08 million, down 50.2% year on year, falling short of analysts’ expectations by 7.2%. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.
Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 36.7% since the results and currently trades at $5.
Read our full analysis of Offerpad’s results here.
Newmark (NASDAQ:NMRK)
Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting.
Newmark reported revenues of $846.5 million, up 27.2% year on year. This result surpassed analysts’ expectations by 13.2%. It was a very strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Newmark scored the highest full-year guidance raise among its peers. The stock is down 4.6% since reporting and currently trades at $15.05.
Read our full, actionable report on Newmark here, it’s free.
JLL (NYSE:JLL)
Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.
JLL reported revenues of $6.39 billion, up 11.1% year on year. This print beat analysts’ expectations by 6.6%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is down 12% since reporting and currently trades at $298.08.
Read our full, actionable report on JLL here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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