Cowen Group (COWN) closed the most recent trading day at $37.67, moving +1.32% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.29%. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.4%.
Coming into today, shares of the financial services company had gained 14.84% in the past month. In that same time, the Finance sector gained 3.84%, while the S&P 500 gained 0.91%.
Wall Street will be looking for positivity from COWN as it approaches its next earnings report date. In that report, analysts expect COWN to post earnings of $2.27 per share. This would mark year-over-year growth of 1045.83%. Our most recent consensus estimate is calling for quarterly revenue of $397.26 million, up 88.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.01 per share and revenue of $1.46 billion, which would represent changes of -38.35% and -6.34%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for COWN. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. COWN is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, COWN is currently trading at a Forward P/E ratio of 5.53. For comparison, its industry has an average Forward P/E of 14.66, which means COWN is trading at a discount to the group.
The Financial – Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 5, putting it in the top 2% 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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