Invesco Mortgage Capital (IVR) Rises But Trails Market: What Investors Should Know

Zacks
01-04

The latest trading session saw Invesco Mortgage Capital (IVR) ending at $8.26, denoting a +1.23% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.26%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.

Heading into today, shares of the real estate investment trust had lost 2.51% over the past month, outpacing the Finance sector's loss of 5.29% and the S&P 500's loss of 2.82% in that time.

The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company is forecasted to report an EPS of $0.66, showcasing a 30.53% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $14.81 million, showing a 78.43% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Invesco Mortgage Capital should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Invesco Mortgage Capital presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Invesco Mortgage Capital is holding a Forward P/E ratio of 3.28. This valuation marks a discount compared to its industry's average Forward P/E of 7.93.

The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow IVR in the coming trading sessions, be sure to utilize Zacks.com.

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