Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Newmark (NASDAQ: NMRK) and the best and worst performers in the consumer discretionary - real estate services industry.

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 6.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.

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 print exceeded analysts’ expectations by 13.2%. Overall, it was a very strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Newmark achieved the highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 5.7% since reporting and currently trades at $14.87.

Is now the time to buy Newmark? Access our full analysis of the earnings results 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 estimates.

Howard Hughes Holdings delivered the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 5.3% since reporting. It currently trades at $66.86.

Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free.

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, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

As expected, the stock is down 11.5% since the results and currently trades at $9.79.

Read our full analysis of RE/MAX’s results here.

Compass (NYSE: COMP)

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE: COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Compass reported revenues of $2.70 billion, up 99.4% year on year. This number topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Compass achieved the highest guidance raise and fastest revenue growth among its peers. The stock is up 37.9% since reporting and currently trades at $10.01.

Read our full, actionable report on Compass here, it’s free.

The Real Brokerage (NASDAQ: REAX)

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

The Real Brokerage reported revenues of $465.6 million, up 31.5% year on year. This result missed analysts’ expectations by 3.4%. Zooming out, it was actually a very strong quarter as it logged a beat of analysts’ EPS and adjusted operating income estimates.

The stock is down 14% since reporting and currently trades at $1.80.

Read our full, actionable report on The Real Brokerage 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.