Since November 2025, Newmark has been in a holding pattern, posting a small loss of 3% while floating around $16.88. The stock also fell short of the S&P 500’s 7.9% gain during that period.
Is now the time to buy Newmark, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Do We Think Newmark Will Underperform?
We're sitting this one out for now. Here are three reasons why NMRK doesn't excite us and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Newmark grew its sales at a 12.5% annual rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the consumer discretionary sector, which enjoys a number of secular tailwinds.
2. Cash Burn Ignites Concerns
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Over the last two years, Newmark’s demanding reinvestments to stay relevant have drained its resources, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 1.3%, meaning it lit $1.28 of cash on fire for every $100 in revenue.
3. New Investments Bear Fruit as ROIC Jumps
We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Newmark’s ROIC averaged 3.6 percentage point increases each year. This is a good sign, and we hope the company can continue improving.
Final Judgment
Newmark falls short of our quality standards. With its shares underperforming the market lately, the stock trades at 8.3× forward P/E (or $16.88 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better stocks to buy right now. Let us point you toward a top digital advertising platform riding the creator economy.
Stocks We Would Buy Instead of Newmark
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