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Is Invesco (IVZ) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Invesco (IVZ - Free Report) . IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.44 right now. For comparison, its industry sports an average P/E of 17.52. IVZ's Forward P/E has been as high as 12.55 and as low as 8.02, with a median of 9.27, all within the past year.

Investors should also note that IVZ holds a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IVZ's industry has an average PEG of 1 right now. Over the past 52 weeks, IVZ's PEG has been as high as 2.92 and as low as 0.90, with a median of 1.12.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVZ has a P/S ratio of 1.35. This compares to its industry's average P/S of 3.17.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Invesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IVZ feels like a great value stock at the moment.


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