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Should Value Investors Buy Invesco Mortgage Capital (IVR) Stock?
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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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Invesco Mortgage Capital (IVR - Free Report) . IVR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.7. This compares to its industry's average Forward P/E of 7.70. Over the last 12 months, IVR's Forward P/E has been as high as 4.12 and as low as 2.63, with a median of 3.41.
Another notable valuation metric for IVR is its P/B ratio of 0.9. The P/B ratio is used to compare a stock's market value with 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 0.96. Over the past 12 months, IVR's P/B has been as high as 0.99 and as low as 0.70, with a median of 0.88.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVR has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.17.
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.
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Should Value Investors Buy Invesco Mortgage Capital (IVR) Stock?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Invesco Mortgage Capital (IVR - Free Report) . IVR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.7. This compares to its industry's average Forward P/E of 7.70. Over the last 12 months, IVR's Forward P/E has been as high as 4.12 and as low as 2.63, with a median of 3.41.
Another notable valuation metric for IVR is its P/B ratio of 0.9. The P/B ratio is used to compare a stock's market value with 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 0.96. Over the past 12 months, IVR's P/B has been as high as 0.99 and as low as 0.70, with a median of 0.88.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVR has a P/S ratio of 1.97. This compares to its industry's average P/S of 2.17.
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.