Realogy Meets Tempered Views

One fear among Wall Street analysts is that the stock will languish next year once Realogy's current 11-million-share buyback program is finished by the end of this year.

However, others have argued that the company's strong real estate broker brands and large amount of free cash flow make the stock attractive at current levels.

The company's prospects for 2007 also remain a question mark. Realogy has yet to give guidance for the year, and residential home sales continue to slow across the country.

On Realogy's conference call, management highlighted the fact that Fannie Mae is predicting a 6% dollar decline in housing sales next year, but cautioned that this shouldn't be construed as company guidance for 2007. Management said the company won't release 2007 forecasts until early next year.