In the latest close session, Invesco Mortgage Capital (IVR) was up +1.38% at $7.37. The stock's performance was ahead of the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Shares of the real estate investment trust have depreciated by 6.31% over the course of the past month, underperforming the Finance sector's gain of 1.4%, and the S&P 500's gain of 2.74%.
The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company is predicted to post an EPS of $0.53, indicating a 22.06% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.44 million, up 185.49% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.25 per share and a revenue of $83.91 million, representing changes of -21.88% and +127.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Invesco Mortgage Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Invesco Mortgage Capital currently has a Zacks Rank of #2 (Buy).
With respect to valuation, Invesco Mortgage Capital is currently being traded at a Forward P/E ratio of 3.23. This denotes a discount relative to the industry average Forward P/E of 9.09.
The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 204, finds itself in the bottom 18% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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INVESCO MORTGAGE CAPITAL INC (IVR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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