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 Forestar Group (NYSE: FOR) 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 2.3% while next quarter’s revenue guidance was 2.3% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.4% since the latest earnings results.

Forestar Group (NYSE: FOR)

As a majority-owned subsidiary of homebuilding giant D.R. Horton, Forestar Group (NYSE: FOR) develops and sells finished residential lots to homebuilders, focusing primarily on land acquisition and development for single-family homes.

Forestar Group reported revenues of $374.3 million, up 6.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates.

Donald J. Tomnitz, Chairman of the Board, said, “The Forestar team achieved solid second quarter results including a 7% increase in revenues and an 8% increase in pre-tax income. Liquidity increased to $1.0 billion driven by financial discipline despite ongoing affordability constraints and cautious consumer sentiment that continue to impact the pace of new home sales. We continue to focus on maximizing returns in each of our projects by aligning the pace and price of lot sales with the timing of our investments to meet demand.

Forestar Group delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 4.8% since reporting and currently trades at $25.20.

Read our full report on Forestar Group here, it’s free.

Best Q1: Marcus & Millichap (NYSE: MMI)

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Marcus & Millichap reported revenues of $171.5 million, up 18.2% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.9% since reporting. It currently trades at $28.18.

Is now the time to buy Marcus & Millichap? 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 estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 18% since the results and currently trades at $9.07.

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

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. This print came in 0.5% below analysts' expectations. More broadly, it was actually a very strong quarter as it logged a beat of analysts’ EPS estimates.

The stock is down 2.4% since reporting and currently trades at $62.

Read our full, actionable report on Howard Hughes Holdings here, it’s free.

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 surpassed 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 pulled off the fastest revenue growth among its peers. The stock is up 4.5% since reporting and currently trades at $7.59.

Read our full, actionable report on Compass 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.