Cowen Group (COWN) closed at $35.15 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500’s daily gain of 0.36%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 1.54%.
Coming into today, shares of the financial services company had gained 0.2% in the past month. In that same time, the Finance sector gained 4.86%, while the S&P 500 gained 4.14%.
COWN will be looking to display strength as it nears its next earnings release. On that day, COWN is projected to report earnings of $3.10 per share, which would represent year-over-year growth of 1391.67%. Our most recent consensus estimate is calling for quarterly revenue of $427.23 million, up 102.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.48 per share and revenue of $1.49 billion, which would represent changes of -16.62% and -4.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for COWN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.05% higher. COWN is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that COWN has a Forward P/E ratio of 3.71 right now. For comparison, its industry has an average Forward P/E of 13.55, which means COWN is trading at a discount to the group.
The Financial – Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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