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 Compass (NYSE: COMP) 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.

While some consumer discretionary - real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% since the latest earnings results.

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 print exceeded analysts’ expectations by 1.2%. Overall, it was an exceptional quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Compass scored the highest guidance raise and fastest revenue growth in the group. Unsurprisingly, the stock is up 59.3% since reporting and currently trades at $11.57.

Is now the time to buy Compass? 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 achieved the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 7.8% since reporting. It currently trades at $68.46.

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’ EPS and EBITDA estimates.

The stock is flat since the results and currently trades at $11.00.

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

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 number came in 3.4% below analysts’ expectations. All in all, it was a mixed quarter for the company.

The stock is down 3.8% since reporting and currently trades at $2.01.

Read our full, actionable report on The Real Brokerage here, it’s free.

Opendoor (NASDAQ: OPEN)

Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Opendoor reported revenues of $720 million, down 37.6% year on year. This print surpassed analysts’ expectations by 8.3%. It was an exceptional quarter as it also put up EPS in line with analysts’ estimates and a decent beat of analysts’ EBITDA estimates.

The stock is down 15.7% since reporting and currently trades at $4.49.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.