Back to top

Image: Bigstock

Is Invesco Mortgage Capital (IVR) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Invesco Mortgage Capital (IVR - Free Report) is a stock many investors are watching right now. IVR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 8.47, while its industry has an average P/E of 10.76. IVR's Forward P/E has been as high as 51.66 and as low as -90.07, with a median of 14.54, all within the past year.

We should also highlight that IVR has a P/B ratio of 0.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.93. Within the past 52 weeks, IVR's P/B has been as high as 1.34 and as low as 0.15, with a median of 0.86.

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


In-Depth Zacks Research for the Tickers Above


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


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

Published in