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4 Reasons to Add Cohen & Steers to Your Portfolio Right Now
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Cohen & Steers’ (CNS - Free Report) strong fundamentals and solid growth prospects make it an attractive investment option. Further, the company will keep benefiting from diversified products and rise in assets under management (AUM).
Analysts also seem to be optimistic about its growth prospects as evident from the upward earnings estimate revisions. Over the last 30 days, the Zacks Consensus Estimate for 2019 earnings has moved 6.9% upward. Also, earnings estimate for 2020 moved nearly 8.7% north during the same time period. Thus, the stock currently sports a Zacks Rank #1 (Strong buy).
Cohen & Steers’ price performance also seems impressive. The stock has rallied 43% so far this year compared to the industry’s rise of 23.2%.
What Makes the Stock an Attractive Pick?
Revenue Strength: Driven by improving AUM balance, Cohen & Steers’ revenues have increased at a CAGR of 2.1% over the last five years (2014-2018). Further, the top line is expected to be up 6.8% in 2019 and 11.1% in 2020.
Earnings Growth: Cohen & Steers witnessed earnings growth of 9.2% in the last three-five years, higher than the industry average of 3%. This earnings momentum is likely to continue, as reflected by its projected earnings per share (EPS) growth rate of 3.8% for 2019 and 10.6% for 2020.
Further, the company’s long-term (three to five years) estimated EPS growth rate of 6.7% promises rewards for investors over the long run.
Capital deployments: Cohen & Steers’ steady capital-deployment activities reflect its capital strength. Since 2011, the company has been raising its dividend annually, with the latest one being announced this February. It also announced a special dividend last November. The company will likely continue to enhance shareholder value backed by strong liquidity, no leverage and consistently improving earnings.
Strong Leverage: Cohen & Steers’ debt/equity ratio is nil, which indicates that the company uses no debt to finance its operations. On the other hand, the industry’s debt/equity ratio stands at 0.25. This shows that the company will be financially stable even amid adverse economic conditions.
Superior Return on Equity (ROE): Cohen & Steers’ trailing 12-month return on equity (ROE) reflects its superiority, in terms of utilizing shareholders’ fund. The company’s ROE of 39.63% compares favorably with the industry’s 12.92%.
Oaktree Capital’s Zacks Consensus Estimate for the current-year earnings has been revised 3.3% upward over the past 60 days. The company’s share price has increased 23.8% over the past three months.
Franklin Resources witnessed an upward earnings estimate revision of 5.5% for the ongoing year in the past 60 days. The stock has gained 15.4% in the past three months.
T. Rowe Price’s Zacks Consensus Estimate for 2019 earnings has been revised nearly 17.4% north in 60 days’ time. Additionally, the company’s shares have rallied 6.8% in three months’ time.
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4 Reasons to Add Cohen & Steers to Your Portfolio Right Now
Cohen & Steers’ (CNS - Free Report) strong fundamentals and solid growth prospects make it an attractive investment option. Further, the company will keep benefiting from diversified products and rise in assets under management (AUM).
Analysts also seem to be optimistic about its growth prospects as evident from the upward earnings estimate revisions. Over the last 30 days, the Zacks Consensus Estimate for 2019 earnings has moved 6.9% upward. Also, earnings estimate for 2020 moved nearly 8.7% north during the same time period. Thus, the stock currently sports a Zacks Rank #1 (Strong buy).
Cohen & Steers’ price performance also seems impressive. The stock has rallied 43% so far this year compared to the industry’s rise of 23.2%.
What Makes the Stock an Attractive Pick?
Revenue Strength: Driven by improving AUM balance, Cohen & Steers’ revenues have increased at a CAGR of 2.1% over the last five years (2014-2018). Further, the top line is expected to be up 6.8% in 2019 and 11.1% in 2020.
Earnings Growth: Cohen & Steers witnessed earnings growth of 9.2% in the last three-five years, higher than the industry average of 3%. This earnings momentum is likely to continue, as reflected by its projected earnings per share (EPS) growth rate of 3.8% for 2019 and 10.6% for 2020.
Further, the company’s long-term (three to five years) estimated EPS growth rate of 6.7% promises rewards for investors over the long run.
Capital deployments: Cohen & Steers’ steady capital-deployment activities reflect its capital strength. Since 2011, the company has been raising its dividend annually, with the latest one being announced this February. It also announced a special dividend last November. The company will likely continue to enhance shareholder value backed by strong liquidity, no leverage and consistently improving earnings.
Strong Leverage: Cohen & Steers’ debt/equity ratio is nil, which indicates that the company uses no debt to finance its operations. On the other hand, the industry’s debt/equity ratio stands at 0.25. This shows that the company will be financially stable even amid adverse economic conditions.
Superior Return on Equity (ROE): Cohen & Steers’ trailing 12-month return on equity (ROE) reflects its superiority, in terms of utilizing shareholders’ fund. The company’s ROE of 39.63% compares favorably with the industry’s 12.92%.
Other Stocks to Consider
A few other top-ranked stocks in the same space are Oaktree Capital Group, LLC , Franklin Resources, Inc. (BEN - Free Report) and T. Rowe Price Group, Inc. (TROW - Free Report) . Each of these stocks flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oaktree Capital’s Zacks Consensus Estimate for the current-year earnings has been revised 3.3% upward over the past 60 days. The company’s share price has increased 23.8% over the past three months.
Franklin Resources witnessed an upward earnings estimate revision of 5.5% for the ongoing year in the past 60 days. The stock has gained 15.4% in the past three months.
T. Rowe Price’s Zacks Consensus Estimate for 2019 earnings has been revised nearly 17.4% north in 60 days’ time. Additionally, the company’s shares have rallied 6.8% in three months’ time.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>