Cousins Properties Inc. (
- a real estate investment trust (REIT) - is expected to beat
expectations when it reports fourth-quarter 2012 results after
the closing bell on Wednesday, Feb 13.
Why a Likely Positive Surprise?
Our proven model shows that Cousins Properties is likely to beat
earnings since it has the appropriate combination of two key
Positive Zacks ESP:
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
Estimate and the Zacks Consensus Estimate, is +20.00%. This
indicates a likely positive earnings surprise.
Zacks Rank #3 (Hold):
This increases the predictive power of its ESP. The combination
of its Zacks Rank and Earnings ESP makes us confident of a
positive earnings surprise in the to-be-reported quarter.
Stocks with Zacks Ranks of #1, #2 and #3 have significantly
higher chances of beating the earnings estimates. The sell rated
stocks (#4 and #5) should never be considered going into an
Cousins Properties has a diversified portfolio of office, retail,
urban residential and single-family communities that are mainly
located in the high-growth Sun Belt region. This mitigates the
operating risks associated with the economic down cycles involved
in operating a single business segment. Benefiting from this, the
company has been performing favorably and has delivered an
average earnings surprise of 16.34% over the last four quarters.
Also, the company maintained focus on upgrading its overall
portfolio with the acquisition of premium assets in the fourth
quarter. Notable among these are the acquisition of Post Oak
Central in the Galleria submarket of Houston and the purchase of
residual 80% interest in Terminus 200 tower in the Buckhead
submarket. We expect this to provide Cousins Properties with a
relatively steady source of revenue and prove accretive to the
Other Stocks to Consider
Here are some other REITs you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this season:
Ventas Inc. (
has an Earnings ESP of +2.06% and carries a Zacks Rank #2 (Buy).
The company is scheduled to report its earnings on Feb 15, before
the opening bell.
Host Hotels & Resorts Inc. (
has an Earnings ESP of +5.41% and holds a Zacks Rank of 3. The
company is scheduled to report its earnings on Feb 21, before the
Vornado Realty Trust (
has an Earnings ESP of +13.04% and carries a Zacks Rank of 3. The
company is scheduled to report its earnings on Feb 26, after the
COUSIN PROP INC (CUZ): Free Stock Analysis
HOST HOTEL&RSRT (HST): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
VENTAS INC (VTR): Free Stock Analysis Report
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