Let’s dig into the relative performance of Cohen & Steers (NYSE: CNS) and its peers as we unravel the now-completed Q3 custody bank earnings season.

Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.

The 16 custody bank stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 5.6%.

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

Cohen & Steers (NYSE: CNS)

Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.

Cohen & Steers reported revenues of $141.7 million, up 6.4% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 5.5% since reporting and currently trades at $62.21.

Is now the time to buy Cohen & Steers? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Invesco (NYSE: IVZ)

With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.

Invesco reported revenues of $1.64 billion, up 8.2% year on year, outperforming analysts’ expectations by 38.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Invesco pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $26.06.

Is now the time to buy Invesco? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: P10 (NYSE: PX)

Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.

P10 reported revenues of $75.93 million, up 2.3% year on year, falling short of analysts’ expectations by 4.5%. It was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ management fees estimates.

P10 delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.9% since the results and currently trades at $9.85.

Read our full analysis of P10’s results here.

WisdomTree (NYSE: WT)

Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.

WisdomTree reported revenues of $125.6 million, up 11% year on year. This print beat analysts’ expectations by 2.2%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ yield estimates.

The stock is flat since reporting and currently trades at $11.61.

Read our full, actionable report on WisdomTree here, it’s free for active Edge members.

Franklin Resources (NYSE: BEN)

Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.

Franklin Resources reported revenues of $1.82 billion, up 5.7% year on year. This result topped analysts’ expectations by 4.8%. It was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $23.38.

Read our full, actionable report on Franklin Resources here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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