Cohen & Steers Inc (NYSE:CNS), a capital markets company based in United States, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $44.92 at one point, and dropping to the lows of $38.33. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Cohen & Steers’s current trading price of $39.7 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Cohen & Steers’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Cohen & Steers
What’s the opportunity in Cohen & Steers?
According to my valuation model, the stock is currently overvalued by about 39%, trading at US$39.70 compared to my intrinsic value of $28.52. This means that the opportunity to buy Cohen & Steers at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that Cohen & Steers’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Cohen & Steers?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Cohen & Steers’s earnings over the next few years are expected to increase by 37.65%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in CNS’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe CNS should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on CNS for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for CNS, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Cohen & Steers. You can find everything you need to know about Cohen & Steers in the latest infographic research report. If you are no longer interested in Cohen & Steers, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.