Invesco Mortgage Capital (IVR) closed at $7.73 in the latest trading session, marking a +1.05% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow experienced a rise of 1.19%, and the technology-dominated Nasdaq saw an increase of 1.43%.
Coming into today, shares of the real estate investment trust had gained 4.08% in the past month. In that same time, the Finance sector gained 1.91%, while the S&P 500 gained 3.92%.
Market participants will be closely following the financial results of Invesco Mortgage Capital in its upcoming release. The company is expected to report EPS of $0.56, down 34.88% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $19.99 million, indicating a 131.37% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $83.91 million, which would represent changes of -22.57% and +127.85%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Invesco Mortgage Capital. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Invesco Mortgage Capital is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Invesco Mortgage Capital is currently exchanging hands at a Forward P/E ratio of 3.44. Its industry sports an average Forward P/E of 8.27, so one might conclude that Invesco Mortgage Capital is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 22% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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