Back to top

Image: Bigstock

Invesco Mortgage Capital (IVR) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Invesco Mortgage Capital (IVR - Free Report) closed at $8.31 in the latest trading session, marking a -1.66% move from the prior day. This move lagged the S&P 500's daily gain of 0.27%. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.26%.

Shares of the real estate investment trust have depreciated by 9.33% over the course of the past month, underperforming the Finance sector's loss of 5.28% and the S&P 500's gain of 2%.

Investors will be eagerly watching for the performance of Invesco Mortgage Capital in its upcoming earnings disclosure. The company is expected to report EPS of $0.79, down 47.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.38 million, up 31.28% from the prior-year quarter.

IVR's full-year Zacks Consensus Estimates are calling for earnings of $3.24 per share and revenue of $41.48 million. These results would represent year-over-year changes of -39.44% and -16.54%, respectively.

Investors might also notice recent changes to analyst estimates for Invesco Mortgage Capital. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.31% higher. Invesco Mortgage Capital is currently a Zacks Rank #2 (Buy).

In terms of valuation, Invesco Mortgage Capital is currently trading at a Forward P/E ratio of 2.61. This indicates a discount in contrast to its industry's Forward P/E of 8.62.

The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 43% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


INVESCO MORTGAGE CAPITAL INC (IVR) - free report >>

Published in