Invesco Mortgage Capital (IVR) closed the latest trading session at $9.01, marking a 1.46% increase from the previous day. This positive performance outpaced the S&P 500’s daily gain of 0.25%, the Dow’s 0.2% rise, and the Nasdaq’s 0.56% growth. The stock has seen a month-over-month surge of 1.95%, outperforming both the Finance sector’s 1.86% and the S&P 500’s 1.65% gains.
Investors will be closely watching Invesco Mortgage Capital’s upcoming earnings report. The company is projected to report earnings per share (EPS) of $0.78, a significant decrease of 48.34% compared to the same period last year. Revenue is anticipated to reach $8.94 million, indicating a 5.2% drop from the previous year’s corresponding quarter.
For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and revenue of $34.21 million, representing decreases of 39.63% and 31.17%, respectively, from the prior year.
It’s crucial to acknowledge recent analyst estimate changes for Invesco Mortgage Capital. These revisions often reflect short-term business trends that can fluctuate rapidly. Upward revisions in estimates typically signal analysts’ optimism about the company’s business operations and profit-generating potential. Research suggests a direct link between these estimate alterations and near-term stock price performance.
To leverage this insight, the Zacks Rank, a proprietary model incorporating estimate changes, provides a functional rating system. Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank boasts a proven track record of outperformance, with #1 stocks achieving an average annual return of 25% since 1988. Over the past 30 days, the consensus EPS projection for Invesco Mortgage Capital has remained unchanged. Currently, the company holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Invesco Mortgage Capital is currently trading at a forward P/E ratio of 2.75. This valuation represents a discount compared to its industry’s average forward P/E of 8.99. The REIT and Equity Trust industry, which falls under the Finance sector, holds a Zacks Industry Rank of 146. This places the industry in the bottom 43% of all industries, totaling over 250. The Zacks Industry Rank gauges the strength of individual industry groups based on the average Zacks Rank of constituent stocks. Research indicates that the top 50% ranked industries outperform the bottom half by a factor of 2 to 1.
