Invesco Mortgage Capital (IVR) Outpaces Stock Market Gains: What You Should Know

Invesco Mortgage Capital (IVR) ended the recent trading session at $7.76, demonstrating a +1.44% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.61%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.

The stock of real estate investment trust has fallen by 1.16% in the past month, lagging the Finance sector's gain of 2.14% and the S&P 500's gain of 3.85%.

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 $0.56, down 34.88% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.99 million, up 131.37% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $83.91 million. These totals would mark changes of -22.57% and +127.85%, respectively, from last year.

It is also important to note the recent changes 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Invesco Mortgage Capital is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Invesco Mortgage Capital currently has a Forward P/E ratio of 3.44. This denotes a discount relative to the industry average Forward P/E of 8.79.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 32% of all 250+ industries.

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.

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

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INVESCO MORTGAGE CAPITAL INC (IVR) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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