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Invesco Mortgage Capital (IVR) Laps the Stock Market: Here's Why

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The latest trading session saw Invesco Mortgage Capital (IVR - Free Report) ending at $9.11, denoting a +0.05% adjustment from its last day's close. This change outpaced the S&P 500's 0.03% gain on the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.2%.

The real estate investment trust's shares have seen an increase of 4.36% over the last month, surpassing the Finance sector's gain of 2.72% and the S&P 500's gain of 1.54%.

Market participants will be closely following the financial results of Invesco Mortgage Capital in its upcoming release. In that report, analysts expect Invesco Mortgage Capital to post earnings of $0.78 per share. This would mark a year-over-year decline of 48.34%. In the meantime, our current consensus estimate forecasts the revenue to be $8.94 million, indicating a 5.2% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.23 per share and a revenue of $34.21 million, signifying shifts of -39.63% and -31.17%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Invesco Mortgage Capital. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has remained steady. As of now, Invesco Mortgage Capital holds a Zacks Rank of #3 (Hold).

Digging into valuation, Invesco Mortgage Capital currently has a Forward P/E ratio of 2.82. This expresses a discount compared to the average Forward P/E of 9 of its industry.

The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 34% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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