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Invesco Mortgage Capital (IVR) Outperforms Broader Market: What You Need to Know

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Invesco Mortgage Capital (IVR - Free Report) ended the recent trading session at $7.38, demonstrating a +2.22% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.

The stock of real estate investment trust has fallen by 1.63% in the past month, leading the Finance sector's loss of 2.19% and undershooting the S&P 500's gain of 1.08%.

The investment community will be closely monitoring the performance of Invesco Mortgage Capital in its forthcoming earnings report. The company is forecasted to report an EPS of $0.53, showcasing a 22.06% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $21.44 million, reflecting a 185.49% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.25 per share and a revenue of $83.91 million, representing changes of -21.88% and +127.85%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Invesco Mortgage Capital. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Invesco Mortgage Capital is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Invesco Mortgage Capital currently has a Forward P/E ratio of 3.21. For comparison, its industry has an average Forward P/E of 8.26, which means Invesco Mortgage Capital is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow IVR in the coming trading sessions, be sure to utilize Zacks.com.


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