Invesco (IVZ) Moves 12.4% Higher: Will This Strength Last?

Invesco IVZ shares rallied 12.4% in the last trading session to close at $13.65. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.3% loss over the past four weeks.

The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.

This investment management company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +21.2%. Revenues are expected to be $1.11 billion, up 5.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Invesco, the consensus EPS estimate for the quarter has been revised 4.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on IVZ going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Invesco is a member of the Zacks Financial - Investment Management industry. One other stock in the same industry, Ameriprise Financial Services AMP, finished the last trading session 11% higher at $473. AMP has returned -10.9% over the past month.

Ameriprise's consensus EPS estimate for the upcoming report has changed -0.7% over the past month to $9.14. Compared to the company's year-ago EPS, this represents a change of +8.9%. Ameriprise currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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