It seems to be a wise idea to add Cohen & Steers, Inc. (CNS - Free Report) stock to your portfolio amid the coronavirus crisis, given the strength in fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance-sheet position.
Further, analysts are bullish on the stock. Over the past 30 days, the Zacks Consensus Estimate for earnings moved 1.4% and 2.8% upward for 2020 and 2021, respectively. The company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Cohen & Steers have appreciated 39.9% in the past 12 months as against the industry's 9.1% fall.
Factors That Make Cohen & Steers a Solid Pick
Earnings Growth: Over the past three to five years, Cohen & Steers has recorded earnings growth of 12.1% compared with the industry’s average of 7%. Though 2020 earnings are expected to decline 17.1%, the same is projected to grow 4.2% in 2021.
Moreover, in the trailing four quarters, the company’s earnings surpassed estimates twice for as many misses, the average positive surprise being 1.1%.
The company’s earnings for the next five years are expected to grow at the rate of 12.9%.
Revenue Strength: Cohen & Steers’ solid assets under management (AUM) balance has resulted in steady revenue growth. The company’s total revenues (GAAP basis) have witnessed a CAGR of 5.7% over the last five years (2015-2019). Also, its AUM witnessed a CAGR of 8.2% during the same time frame. Notably, the company’s diverse product offerings and investment strategies continue to attract investors, which will likely further boost top-line growth.
Solid Balance-Sheet Position: As of Mar 31, 2020, Cohen & Steers had total debt worth $40.6 million, which is lower than the cash & cash equivalents balance of $43 million. Moreover, the current total debt to total capital of 17.2% is below the industry average. This suggests that the company carries a relatively lesser credit risk and chances of its default in debt payments are likely to be lower even if the economic situation worsens.
Steady Capital Deployment: Cohen & Steers’ capital-deployment activities are impressive. Since 2011, the company has been increasing its dividend annually, with the latest one announced in February. Aided by a robust liquidity position, its capital deployments look sustainable and thus, the company is expected to continue enhancing shareholder value.
Superior ROE: Cohen & Steers’ trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 54.04% compares favorably with the industry’s 12.55%, highlighting that it is more efficient in using shareholder funds than peers.
Other Stocks to Consider
AllianceBernstein L.P. (AB - Free Report) witnessed an upward earnings estimate revision of 6.3% for 2020 over the past 60 days. Its shares have lost 12.3% over the past year. At present, it sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BlackRock, Inc. (BLK - Free Report) has witnessed a 5% upward earnings estimate revision for the ongoing year in the past 60 days. Its shares have gained19.7% over the past year. Currently, it flaunts a Zacks Rank of 1.
BrightSphere Investment Group Inc. (BSIG - Free Report) witnessed an upward earnings estimate revision of 16% for the current year over the past 60 days. Its shares have lost 21.2% over the past year. It currently sports a Zacks Rank of 1.
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