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

The latest trading session saw Invesco Mortgage Capital IVR ending at $9.01, denoting a +1.46% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.56%.

The real estate investment trust's shares have seen an increase of 1.95% over the last month, surpassing the Finance sector's gain of 1.86% and the S&P 500's gain of 1.65%.

The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company is expected to report EPS of $0.78, down 48.34% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $8.94 million, indicating a 5.2% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $34.21 million, indicating changes of -39.63% and -31.17%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Invesco Mortgage Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Invesco Mortgage Capital is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Invesco Mortgage Capital is currently exchanging hands at a Forward P/E ratio of 2.75. This valuation marks a discount compared to its industry's average Forward P/E of 8.99.

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 strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To read this article on Zacks.com click here.