For the last two quarters, it has trounced earnings expectations, reporting $0.16 and $0.20 a share against expectations of $0.11 and $0.14, respectively. Analysts have since pushed estimates higher, but the stock hasn't really moved, as the overall market has been range-bound.
The valuation looks good: trailing P/E is 5, forward P/E is 8.5, and it trades just below book value. Cowen has a net $500 million in cash, and the market cap is $1.3 billion.
Cowen was a $20 stock back in 2007. It's around $6 now, and it's just breaking out to post-financial crisis highs. The stock has rallied ~25% since November 2014.
I wouldn't be shocked to see Cowen shares pull back 10%, and I also wouldn't be surprised to see it run another 60% to $10 over the next six months.
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