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5 Reasons to Invest in Cohen & Steers (CNS) Stock Right Now

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Cohen & Steers, Inc. (CNS - Free Report) stock looks like a good investment option now. The company’s diverse product offerings and investment strategies are expected to keep supporting growth in the long run. Moreover, its solid assets under management (AUM) balance will likely aid revenue growth.

Notably, the company has been witnessing upward earnings estimate revisions of late, reflecting that analysts are optimistic regarding its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for its 2020 and 2021 earnings moved upward by 2.9% and 4.1%, respectively.

Thus, the company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Looking at its price performance, shares of Cohen & Steers have gained 8.7% so far this year, outperforming 6.8% growth recorded by the industry.






Below a few other factors are mentioned, which make Cohen & Steers a viable investment option now.

Earnings per Share (EPS) Growth: Over the last three to five years, the company recorded EPS growth of 11.4%, higher than the industry’s 6.6%. While earnings are projected to decline 4.3% in 2020, the trend will likely reverse after that. In 2021, earnings are expected to grow 12.6%.

Moreover, its long-term (three-five years) projected EPS growth rate of 1.3% promises reward for investors.

Revenue Strength: Driven by a continued rise in AUM balance, Cohen & Steers has witnessed improvement in the top line over the past several years. Over the last five years (ended 2019), total revenues (GAAP basis) recorded a compound annual growth rate (CAGR) of 5.7%, with the uptrend continuing in the first nine months of 2020. Likewise, AUM witnessed a CAGR of 8.2% over the same period. Supported by the company’s diverse product offerings and investment strategies that continuously attract investors, revenue growth is expected to continue in the quarters ahead.

Strong Leverage: Cohen & Steers’ debt/equity ratio is nil, while that of the industry is 0.08. This shows that the company does not use any debt to finance its operations. Hence, it will be financially stable, even in adverse economic conditions.

Steady Capital Deployments: The company’s capital deployment activities seem impressive. Since 2011, it has been increasing dividends annually, with the latest one announced in February 2020. Also, the company announced a special dividend in November 2020. Thus, driven by a strong liquidity position and no debt, it is expected to be able to sustain efficient capital deployments in the future through which it will enhance shareholder value.

Superior Return on Equity (ROE): Cohen & Steers’ trailing 12-month ROE supports its growth potential. The company’s ROE of 58.44% compares favorably with the industry’s 12.18%, reflecting that it is more efficient in using shareholders’ funds than peers.

Other Stocks to Consider

A few other top-ranked stocks from the finance space are mentioned below.

The Blackstone Group Inc. (BX - Free Report) has witnessed an upward earnings estimate revision of 20.9% for the current year over the past 60 days. Its shares have gained 6.5% over the past six months. The company carries a Zacks Rank #2 at present.

Interactive Brokers Group, Inc.’s (IBKR - Free Report) earnings estimates have been revised 1.8% upward for the current year over the past 60 days. Over the past six months, this Zacks Rank #2 company has gained 39.9%.

BlackRock, Inc.’s (BLK - Free Report) earnings estimates for the current year have been revised 8.5% upward over the past 60 days. Its shares have witnessed a rise of 31% over the past six months. The company currently carries a Zacks Rank #2.

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