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IVZ Hits 52-Week High on Pending QQQ Reclassification: Is It a Buy?
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Key Takeaways
IVZ surged as QQQ's move to an open-end ETF is expected to unlock better efficiency and lower expenses.
AUM growth, cost synergies and global expansion continue to support IVZ's broader momentum.
IVZ still faces weak top-line trends and high intangible assets that have weighed on past financials.
Invesco’s (IVZ - Free Report) shares touched a new 52-week high of $26.39 in Friday’s trading session, supported by investor optimism around the Invesco QQQ exchange-traded fund’s (ETF) pending reclassification alongside the prospect of higher fees and improved efficiency.
Over the past six months, IVZ stock has gained 78.7%, outperforming the industry, the Zacks Finance Sector and the S&P 500 index. Also, the company’s shares have fared better than its close peers, T. Rowe Price (TROW - Free Report) and Franklin Resources, Inc. (BEN - Free Report) .
Six-Month Price Performance
Image Source: Zacks Investment Research
QQQ has operated under a legacy unit investment trust (UIT) structure since its 1999 launch, which helped establish the fund but now restricts reinvesting dividends, securities lending and other efficiencies. As ETFs have evolved, UITs have become costlier and less flexible. The reclassification aims to align QQQ with today’s open-end ETF model to unlock operational efficiencies and reduce expense ratio. This is also expected to drive revenues.
The move aligns with the IVZ’s efforts to grow assets under management (AUM). The metric witnessed a compound annual growth rate (CAGR) of 8.5% in the last five years ending in 2024. The uptrend continued in the first nine months of 2025.
In April 2025, the company collaborated with MassMutual’s subsidiary, Barings, to boost private credit offerings. Prior to that, the 2019 acquisition of OppenheimerFunds resulted in a substantial rise in the company's AUM, making it one of the leading global asset managers. Invesco has also been capitalizing on the rising demand for passive products, which constituted 47.4% of total AUM as of Sept. 30, 2025.
Other Factors That Support Invesco’s Growth
Improving Operating Efficiency: Invesco has been undertaking initiatives to improve operating efficiency. The company exceeded its target of realizing net cost synergies from the OppenheimerFunds acquisition and achieved $200 million in annualized net savings well ahead of schedule.
In August 2025, it announced a deal to sell Intelliflo, which it had acquired in 2018, to Carlyle Group to boost efficiency. While adjusted operating expenses increased in 2023 and in the first nine months of 2025, the metric declined 2.2% in 2024. Thus, management’s continuous efforts to manage its expenses prudently will likely lead to higher operating leverage going forward.
Robust Global Presence: Apart from a strong presence in the United States, Invesco maintains a solid foothold in Europe, Canada and the Asia-Pacific. As of Sept. 30, 2025, the company’s client AUM outside the United States constituted 31% of total AUM. The acquisition of Europe-based Source, a leading, independent specialist provider of ETFs, will drive Invesco’s global presence.
Also, the sale of the majority stake in the India business to establish a joint venture will strengthen IVZ’s Asia presence, while allowing capital allocation to more profitable projects.
These and other diversification efforts will likely help the company generate further momentum from its business outside the United States.
Solid Balance Sheet Position: As of Sept. 30, 2025, Invesco had total debt, including debt of consolidated investment products (CIP), of $9.94 billion, significantly higher than cash and cash equivalents of $973.1 million.
Additionally, the company maintains a stable outlook and investment-grade long-term senior debt ratings of A3, BBB+ and A from Moody’s Investors Service, S&P Ratings and Fitch Ratings, respectively. This renders the company favorable access to the debt market.
This enables Invesco to pursue efficient capital distributions. In April 2025, the company announced a 2.4% hike in its quarterly dividend to 21 cents per share. The company has been consistently raising its quarterly dividends. The company hiked dividends six times during the last five years, with a dividend payout ratio of 44%.
Dividend Yield
Image Source: Zacks Investment Research
Similarly, T. Rowe Price and Franklin Resources increased their dividends five times each over the past five years.
Also, IVZ has a share repurchase plan. As of Sept. 30, 2025, almost $257.2 million of the buyback authorization remained. Going forward, the company expects to repurchase shares regularly.
Bullish Analyst Sentiments for IVZ
Over the past month, the Zacks Consensus Estimate for earnings of $1.95 per share for 2025 has moved marginally upward, while that for 2026 has risen 3.2% to $2.58.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply growth of 14% and 32.2% for 2025 and 2026, respectively.
Attractive Valuation for Invesco
From a valuation perspective, IVZ stock is currently trading at a forward 12-month price/earnings (P/E) of 10.34X. This is below the industry’s 12.73X.
Forward 12-Month P/E
Image Source: Zacks Investment Research
On the other hand, T. Rowe Price and Franklin Resources have a forward P/E of 10.38X and 9.02X, respectively. This reflects that Invesco is expensive compared to Franklin, while relatively cheaper than T. Rowe Price.
Roadblocks for Invesco
Muted Top Line: Invesco's top-line growth has been weak. Though total operating revenues increased in 2024 and the first nine months of 2025, the metric has been recording a downtrend since the second half of 2020.
Despite having a robust institutional pipeline, diverse product offerings, alternative investment strategies and solid retail channels, revenues are likely to be under pressure in the near term due to a challenging operating backdrop.
Significant Intangible Assets: As of Sept. 30, 2025, Invesco’s goodwill and net intangible assets remained considerably high, totaling $14.2 billion (49.9% of total assets).
Several factors may initiate the impairment of the book value of such assets, due to which their value may have to be written down. This is expected to affect the company’s financials adversely. In 2023, amortization and impairment of intangible assets-related charges significantly hampered the company’s financials, resulting in a net loss.
Final Thoughts on Invesco Stock
QQQ reclassification, solid global presence and a strong balance sheet are likely to support Invesco’s financials. Moreover, improving operating efficiency will further aid profitability. This is reflected in bullish analyst sentiments. Additionally, an attractive valuation is a positive.
However, a subdued top line amid a tough operating backdrop and significant exposure to intangible assets on the balance sheet remain concerns.
Investors should assess how Invesco addresses these issues before investing in it. IVZ stock thus remains a cautious bet for investors now. Those who own it can continue holding it for long-term gains.
Image: Shutterstock
IVZ Hits 52-Week High on Pending QQQ Reclassification: Is It a Buy?
Key Takeaways
Invesco’s (IVZ - Free Report) shares touched a new 52-week high of $26.39 in Friday’s trading session, supported by investor optimism around the Invesco QQQ exchange-traded fund’s (ETF) pending reclassification alongside the prospect of higher fees and improved efficiency.
Over the past six months, IVZ stock has gained 78.7%, outperforming the industry, the Zacks Finance Sector and the S&P 500 index. Also, the company’s shares have fared better than its close peers, T. Rowe Price (TROW - Free Report) and Franklin Resources, Inc. (BEN - Free Report) .
Six-Month Price Performance
Image Source: Zacks Investment Research
QQQ has operated under a legacy unit investment trust (UIT) structure since its 1999 launch, which helped establish the fund but now restricts reinvesting dividends, securities lending and other efficiencies. As ETFs have evolved, UITs have become costlier and less flexible. The reclassification aims to align QQQ with today’s open-end ETF model to unlock operational efficiencies and reduce expense ratio. This is also expected to drive revenues.
The move aligns with the IVZ’s efforts to grow assets under management (AUM). The metric witnessed a compound annual growth rate (CAGR) of 8.5% in the last five years ending in 2024. The uptrend continued in the first nine months of 2025.
In April 2025, the company collaborated with MassMutual’s subsidiary, Barings, to boost private credit offerings. Prior to that, the 2019 acquisition of OppenheimerFunds resulted in a substantial rise in the company's AUM, making it one of the leading global asset managers. Invesco has also been capitalizing on the rising demand for passive products, which constituted 47.4% of total AUM as of Sept. 30, 2025.
Other Factors That Support Invesco’s Growth
Improving Operating Efficiency: Invesco has been undertaking initiatives to improve operating efficiency. The company exceeded its target of realizing net cost synergies from the OppenheimerFunds acquisition and achieved $200 million in annualized net savings well ahead of schedule.
In August 2025, it announced a deal to sell Intelliflo, which it had acquired in 2018, to Carlyle Group to boost efficiency. While adjusted operating expenses increased in 2023 and in the first nine months of 2025, the metric declined 2.2% in 2024. Thus, management’s continuous efforts to manage its expenses prudently will likely lead to higher operating leverage going forward.
Robust Global Presence: Apart from a strong presence in the United States, Invesco maintains a solid foothold in Europe, Canada and the Asia-Pacific. As of Sept. 30, 2025, the company’s client AUM outside the United States constituted 31% of total AUM. The acquisition of Europe-based Source, a leading, independent specialist provider of ETFs, will drive Invesco’s global presence.
Also, the sale of the majority stake in the India business to establish a joint venture will strengthen IVZ’s Asia presence, while allowing capital allocation to more profitable projects.
These and other diversification efforts will likely help the company generate further momentum from its business outside the United States.
Solid Balance Sheet Position: As of Sept. 30, 2025, Invesco had total debt, including debt of consolidated investment products (CIP), of $9.94 billion, significantly higher than cash and cash equivalents of $973.1 million.
Additionally, the company maintains a stable outlook and investment-grade long-term senior debt ratings of A3, BBB+ and A from Moody’s Investors Service, S&P Ratings and Fitch Ratings, respectively. This renders the company favorable access to the debt market.
This enables Invesco to pursue efficient capital distributions. In April 2025, the company announced a 2.4% hike in its quarterly dividend to 21 cents per share. The company has been consistently raising its quarterly dividends. The company hiked dividends six times during the last five years, with a dividend payout ratio of 44%.
Dividend Yield
Image Source: Zacks Investment Research
Similarly, T. Rowe Price and Franklin Resources increased their dividends five times each over the past five years.
Also, IVZ has a share repurchase plan. As of Sept. 30, 2025, almost $257.2 million of the buyback authorization remained. Going forward, the company expects to repurchase shares regularly.
Bullish Analyst Sentiments for IVZ
Over the past month, the Zacks Consensus Estimate for earnings of $1.95 per share for 2025 has moved marginally upward, while that for 2026 has risen 3.2% to $2.58.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply growth of 14% and 32.2% for 2025 and 2026, respectively.
Attractive Valuation for Invesco
From a valuation perspective, IVZ stock is currently trading at a forward 12-month price/earnings (P/E) of 10.34X. This is below the industry’s 12.73X.
Forward 12-Month P/E
Image Source: Zacks Investment Research
On the other hand, T. Rowe Price and Franklin Resources have a forward P/E of 10.38X and 9.02X, respectively. This reflects that Invesco is expensive compared to Franklin, while relatively cheaper than T. Rowe Price.
Roadblocks for Invesco
Muted Top Line: Invesco's top-line growth has been weak. Though total operating revenues increased in 2024 and the first nine months of 2025, the metric has been recording a downtrend since the second half of 2020.
Despite having a robust institutional pipeline, diverse product offerings, alternative investment strategies and solid retail channels, revenues are likely to be under pressure in the near term due to a challenging operating backdrop.
Significant Intangible Assets: As of Sept. 30, 2025, Invesco’s goodwill and net intangible assets remained considerably high, totaling $14.2 billion (49.9% of total assets).
Several factors may initiate the impairment of the book value of such assets, due to which their value may have to be written down. This is expected to affect the company’s financials adversely. In 2023, amortization and impairment of intangible assets-related charges significantly hampered the company’s financials, resulting in a net loss.
Final Thoughts on Invesco Stock
QQQ reclassification, solid global presence and a strong balance sheet are likely to support Invesco’s financials. Moreover, improving operating efficiency will further aid profitability. This is reflected in bullish analyst sentiments. Additionally, an attractive valuation is a positive.
However, a subdued top line amid a tough operating backdrop and significant exposure to intangible assets on the balance sheet remain concerns.
Investors should assess how Invesco addresses these issues before investing in it. IVZ stock thus remains a cautious bet for investors now. Those who own it can continue holding it for long-term gains.
IVZ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.