eXp World Holdings, Inc, the parent company of eXp Realty, has been gaining steam over the last year and appears to be poised from a breakthrough. Financial analyst and equity services firm, William Blair & Co, seems to agree and is letting their investors and clients in on the secret.
On July 21, 2017, William Blair & Co issued a released stating they were “initiating coverage with an Outperform rating,” citing a “compelling value proposition for agents” and eXp’s position within an overall “evolving technology trend” within the real estate industry.
Now, before we go any further, we would like to remind our readers that we are not financial analysts and we do not offer any stock insights or suggestions. Nothing in this blog entry should be construed as financial advice. We are simply sharing what a particular firm stated about eXp World Holding and EXPI. For more information, please read the legal disclaimer.
Among the positive statistics and projections that contributed to the Outperform rating, the analysts expect a one hundred forty-four percent (144%) increase in revenue for eXp Realty in 2017, seventy-eight percent (78%) in 2019 and sixty percent (60%) in 2020. They also expect margins to continue to grow and revenue streams to hold strong, but we are not going to get into all of that here since those details are a little beyond our depth. For our purposes, the one thing real estate professionals need to understand is that this news is a positive reflection on the financial strength of the agent-owned cloud brokerage model.
What is an “Outperform” Rating?
It’s pretty straightforward, to be honest. William Blair expects EXPI to perform better than the average stocks available to investors, including the S&P 500. But don’t take my word for it; just take a quick peek at the chart from Investopedia below:
How Does That Affect My Income?
Nothing in life is guaranteed and we aren’t making any promises, but it seems that it’s a pretty good thing for real estate professionals to have an opportunity to buy stock at a discount and earn additional stock throughout their career, especially if financial analysts are rating the stock as a “Moderate Buy” to their investors and clients who would have to pay full market price.
The eXp Realty leadership team is going to have to stay ahead of the curve because established brokerages are going to adjust as the company sees more and more success. More upstarts will also begin to pop up to complete in the new agent-owned cloud brokerage space, so needless to say, there is a lot of work ahead. However, even with all of that being said, the team here at Expand Your Commissions looks at it this way:
If our options are either a) pay royalty fees to a large corporation every time we close a deal, or b) use that money to purchase EXPI stock… we are going with the stock options every time. Every. Single. Time.
What’s the First Step?
If you are interested in learning more about what eXp World Holdings and, more specifically, eXp Realty have to offer, please get in touch via the Contact Us page. We’d be more than happy to schedule a meeting or call to talk more about the Extra Income opportunities, Revenue Share program, and everything else we love about this brokerage!