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5 Reasons That Make Cohen & Steers (CNS) Stock Worth Buying
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It seems to be a wise option to add Cohen & Steers, Inc. (CNS - Free Report) stock to your portfolio 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 continue to aid revenue growth.
It 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 2021 earnings moved upward by 1.8%.
Looking at its price performance, shares of Cohen & Steers have gained 22% over the past year compared with 78% growth recorded by the industry.
Let’s check some of the other factors that make the company a viable investment option now.
Earnings per Share (EPS) Growth: Over the last three to five years, Cohen & Steers recorded EPS growth of 10.1%, higher than the industry average of 6.6%. The uptrend in earnings is expected to continue in the near term. Earnings are projected to grow 32.3% in 2021 and 10.9% in 2022.
Moreover, its long-term (three-five years) projected EPS growth rate of 21.1% 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 2020), total revenues (GAAP basis) witnessed a compound annual growth rate (CAGR) of 5%, with the uptrend continuing in the first three months of 2021. Likewise, AUM witnessed a CAGR of 7.4% over the same period. Supported by the company’s diverse product offerings and investment strategies, which 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 2021. Also, the company announced a special dividend in November 2020. Driven by a strong liquidity position and no debt, its capital deployments look sustainable. Thus, the company is expected to continue enhancing shareholder value.
Superior Return on Equity (ROE): Cohen & Steers’ trailing 12-month ROE supports its growth potential. The company’s ROE of 66.18% compares favorably with the industry’s 14.99%, reflecting that it is more efficient in using shareholders’ funds than peers.
Other Stocks to Consider
A few other top-ranked stocks from the same space are mentioned below.
The Blackstone Group Inc. (BX - Free Report) has witnessed an upward earnings estimate revision of 10.4% for the current year over the past 60 days. Its shares have gained 56.4% over the past six months. The company carries a Zacks Rank #2 at present.
Ameriprise Financial, Inc.’s (AMP - Free Report) earnings estimates have been revised 9.2% upward for the current year over the past 60 days. Over the past six months, this Zacks Rank #2 company’s shares have gained 39.7%.
Invesco Ltd.’s (IVZ - Free Report) earnings estimates for the current year have been revised 9.2% upward over the past 60 days. Its shares have witnessed a rise of 75.5% over the past six months. The company currently carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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5 Reasons That Make Cohen & Steers (CNS) Stock Worth Buying
It seems to be a wise option to add Cohen & Steers, Inc. (CNS - Free Report) stock to your portfolio 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 continue to aid revenue growth.
It 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 2021 earnings moved upward by 1.8%.
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 22% over the past year compared with 78% growth recorded by the industry.
Let’s check some of the other factors that make the company a viable investment option now.
Earnings per Share (EPS) Growth: Over the last three to five years, Cohen & Steers recorded EPS growth of 10.1%, higher than the industry average of 6.6%. The uptrend in earnings is expected to continue in the near term. Earnings are projected to grow 32.3% in 2021 and 10.9% in 2022.
Moreover, its long-term (three-five years) projected EPS growth rate of 21.1% 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 2020), total revenues (GAAP basis) witnessed a compound annual growth rate (CAGR) of 5%, with the uptrend continuing in the first three months of 2021. Likewise, AUM witnessed a CAGR of 7.4% over the same period. Supported by the company’s diverse product offerings and investment strategies, which 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 2021. Also, the company announced a special dividend in November 2020. Driven by a strong liquidity position and no debt, its capital deployments look sustainable. Thus, the company is expected to continue enhancing shareholder value.
Superior Return on Equity (ROE): Cohen & Steers’ trailing 12-month ROE supports its growth potential. The company’s ROE of 66.18% compares favorably with the industry’s 14.99%, reflecting that it is more efficient in using shareholders’ funds than peers.
Other Stocks to Consider
A few other top-ranked stocks from the same space are mentioned below.
The Blackstone Group Inc. (BX - Free Report) has witnessed an upward earnings estimate revision of 10.4% for the current year over the past 60 days. Its shares have gained 56.4% over the past six months. The company carries a Zacks Rank #2 at present.
Ameriprise Financial, Inc.’s (AMP - Free Report) earnings estimates have been revised 9.2% upward for the current year over the past 60 days. Over the past six months, this Zacks Rank #2 company’s shares have gained 39.7%.
Invesco Ltd.’s (IVZ - Free Report) earnings estimates for the current year have been revised 9.2% upward over the past 60 days. Its shares have witnessed a rise of 75.5% over the past six months. The company currently carries a Zacks Rank #2.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>