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Here's Why You Should Buy Cowen Group (COWN) Stock Now
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It seems to be a wise idea to add Cowen Group, Inc. stock to your portfolio now, given its underlying strength and solid growth prospects amid the coronavirus pandemic. The company has been undertaking several efforts to improve its efficiency and optimize operations.
Further, the Zacks Consensus Estimate for the current-year and next-year earnings moved upward over the past 30 days, respectively, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).
Shares of Cowen Group have gained 36% in the past three months compared with the industry’s growth of 15.8%.
Why is Cowen Group a Golden Egg?
Revenue Strength: The company has witnessed a rise in net revenues over the last five years. Total revenues are projected to grow at a rate of 24.9% in 2020 (compared with the nil industry average). This upward trend is anticipated to be supported by a decent lending scenario and Cowen Group’s efforts to boost its fee income.
Earnings per Share Growth: The company has witnessed a rise in earnings over the last three years and Cowen Group’s earnings for 2020 are projected to climb 42.2%. This earnings momentum is likely to continue in the near term on record trading and investment banking performance.
Steady Capital-Deployment Activities: The company remains committed to enhancing its shareholders’ value. As of Dec 31, 2019, the board authorized the repurchase of up to $216 million of Cowen Class A common stock. Further, the bank has initiated common stock dividends this year, with the latest announcement in August.
Superior Return on Equity (ROE): Cowen Group’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with the peers. The company has an ROE of 19.7%, higher than the industry average of 12.32%.
Stock seems undervalued: With respect to the price-to-book value and price-to-earnings (F1) ratios, Cowen Group seems undervalued. It has a P/B ratio of 0.45 and a P/E ratio of 2.71, both of which are below the respective industry average of 1.74 and 13.62.
Also, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with the combination of a Style Score of A or B, and carrying a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Other Stocks to Consider
TD Ameritrade Holding Corporation (AMTD - Free Report) has been witnessing upward estimate revisions for the past 30 days. Moreover, this Zacks #1 Ranked stock has rallied more than 8% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 25.6% in the past three months. At present, it carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has appreciated 40.1% in three months’ time. It currently flaunts a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Here's Why You Should Buy Cowen Group (COWN) Stock Now
It seems to be a wise idea to add Cowen Group, Inc. stock to your portfolio now, given its underlying strength and solid growth prospects amid the coronavirus pandemic. The company has been undertaking several efforts to improve its efficiency and optimize operations.
Further, the Zacks Consensus Estimate for the current-year and next-year earnings moved upward over the past 30 days, respectively, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).
Shares of Cowen Group have gained 36% in the past three months compared with the industry’s growth of 15.8%.
Why is Cowen Group a Golden Egg?
Revenue Strength: The company has witnessed a rise in net revenues over the last five years. Total revenues are projected to grow at a rate of 24.9% in 2020 (compared with the nil industry average). This upward trend is anticipated to be supported by a decent lending scenario and Cowen Group’s efforts to boost its fee income.
Earnings per Share Growth: The company has witnessed a rise in earnings over the last three years and Cowen Group’s earnings for 2020 are projected to climb 42.2%. This earnings momentum is likely to continue in the near term on record trading and investment banking performance.
Steady Capital-Deployment Activities: The company remains committed to enhancing its shareholders’ value. As of Dec 31, 2019, the board authorized the repurchase of up to $216 million of Cowen Class A common stock. Further, the bank has initiated common stock dividends this year, with the latest announcement in August.
Superior Return on Equity (ROE): Cowen Group’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with the peers. The company has an ROE of 19.7%, higher than the industry average of 12.32%.
Stock seems undervalued: With respect to the price-to-book value and price-to-earnings (F1) ratios, Cowen Group seems undervalued. It has a P/B ratio of 0.45 and a P/E ratio of 2.71, both of which are below the respective industry average of 1.74 and 13.62.
Also, the stock has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with the combination of a Style Score of A or B, and carrying a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Other Stocks to Consider
TD Ameritrade Holding Corporation (AMTD - Free Report) has been witnessing upward estimate revisions for the past 30 days. Moreover, this Zacks #1 Ranked stock has rallied more than 8% in the past three months. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation has been witnessing upward estimate revisions for the past 30 days. Further, the company’s shares have gained 25.6% in the past three months. At present, it carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has appreciated 40.1% in three months’ time. It currently flaunts a Zacks Rank #1.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>