As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer discretionary - real estate services industry, including JLL (NYSE: JLL) and its peers.

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 10.2% while next quarter’s revenue guidance was 4.4% below.

Thankfully, share prices of the companies have been resilient as they are up 9.9% on average since the latest earnings results.

JLL (NYSE: JLL)

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE: JLL) is a company specializing in real estate advisory and investment management services.

JLL reported revenues of $6.93 billion, up 10.8% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

"JLL's record second-quarter performance is the product of our compelling value proposition and growing demand for our core services. Continued acceleration in Advisory revenues and disciplined execution across JLL drove robust profit growth, margin expansion and cash flow generation," said Christian Ulbrich, JLL CEO.

Interestingly, the stock is up 15.5% since reporting and currently trades at $392.77.

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

Best Q2: 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 $1.12 billion, up 330% year on year, outperforming analysts’ expectations by 139%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

Howard Hughes Holdings scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 2% since reporting. It currently trades at $67.02.

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

Slowest Q2: Offerpad (NYSE: OPAD)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Offerpad reported revenues of $77.65 million, down 51.6% year on year, falling short of analysts’ expectations by 8.9%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.

Offerpad delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth in the group. Interestingly, the stock is up 21.8% since the results and currently trades at $4.45.

Read our full analysis of Offerpad’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 $4.31 billion, up 109% year on year. This result topped analysts’ expectations by 4.7%. It was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.

Compass achieved the highest guidance raise of the whole group. The stock is down 3.4% since reporting and currently trades at $11.59.

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

Zillow (NASDAQ: ZG)

Founded by Expedia co-founders Lloyd Frink and Rich Barton, Zillow (NASDAQ: ZG) is the leading U.S. online real estate marketplace.

Zillow reported revenues of $772 million, up 17.9% year on year. This print beat analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates.

The stock is down 1.1% since reporting and currently trades at $36.47.

Read our full, actionable report on Zillow 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 Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.