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Cowen Group (COWN) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Cowen Group (COWN - Free Report) closed at $41.97, marking a +1.21% move from the previous day. This move outpaced the S&P 500's daily gain of 0.75%.

Coming into today, shares of the financial services company had gained 4.91% in the past month. In that same time, the Finance sector lost 1.76%, while the S&P 500 gained 2.91%.

Investors will be hoping for strength from COWN as it approaches its next earnings release, which is expected to be July 28, 2021. In that report, analysts expect COWN to post earnings of $1.49 per share. This would mark a year-over-year decline of 73.81%. Our most recent consensus estimate is calling for quarterly revenue of $351.94 million, down 37.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.82 per share and revenue of $1.75 billion. These totals would mark changes of -22.43% and +12.69%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for COWN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. COWN is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that COWN has a Forward P/E ratio of 4.7 right now. This represents a discount compared to its industry's average Forward P/E of 12.66.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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