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Invesco (IVZ) Surges 15.3%: Is This an Indication of Further Gains?

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Invesco (IVZ - Free Report) shares soared 15.3% in the last trading session to close at $19.92. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.4% gain over the past four weeks.

Shares of Invesco rose for a third straight session on Friday, briefly touching a 52-week high of $20.05. The rally followed news that the company is seeking shareholder approval to convert the Invesco QQQ Trust from a unit investment trust to an open-end ETF structure. The proposed change would allow the company to earn revenues and potential profits from the fund, whereas under the current structure, it can only recover marketing costs. The move sparked strong investor interest, fueling the stock’s upward momentum.

This investment management company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -7%. Revenues are expected to be $1.11 billion, up 1.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Invesco, the consensus EPS estimate for the quarter has been revised 12.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IVZ going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Invesco is part of the Zacks Financial - Investment Management industry. Silvercrest (SAMG - Free Report) , another stock in the same industry, closed the last trading session 0.4% higher at $16.48. SAMG has returned 12.1% in the past month.

For Silvercrest, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.3. This represents no change from what the company reported a year ago. Silvercrest currently has a Zacks Rank of #3 (Hold).


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