3 Reasons to Sell IVZ and 1 Stock to Buy Instead

Over the past six months, Invesco has been a great trade, beating the S&P 500 by 15.9%. Its stock price has climbed to $26.48, representing a healthy 26.1% increase. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Invesco, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free.

Why Do We Think Invesco Will Underperform?

We’re happy investors have made money, but we're cautious about Invesco. Here are three reasons we avoid IVZ and a stock we'd rather own.

1. Long-Term Revenue Growth Flatter Than a Pancake

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

Unfortunately, Invesco struggled to consistently increase demand as its $4.66 billion of revenue for the trailing 12 months was close to its revenue five years ago. This was below our standards and signals it’s a low quality business.

2. EPS Growth Has Stalled

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Invesco’s EPS was flat over the last five years, just like its revenue. This performance was underwhelming across the board.

3. Previous Growth Initiatives Haven’t Impressed

Return on equity (ROE) reveals the profit generated per dollar of shareholder equity, which represents a key source of bank funding. Banks maintaining elevated ROE levels tend to accelerate wealth creation for shareholders via earnings retention, buybacks, and distributions.

Over the last five years, Invesco has averaged an ROE of 4%, uninspiring for a company operating in a sector where the average shakes out around 10%.

Final Judgment

Invesco falls short of our quality standards. With its shares beating the market recently, the stock trades at 10.2× forward P/E (or $26.48 per share). At this valuation, there’s a lot of good news priced in - we think there are better stocks to buy right now. We’d recommend looking at the most dominant software business in the world.

Stocks We Would Buy Instead of Invesco

While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.