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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.85 right now. For comparison, its industry sports an average P/E of 10.74. IVZ's Forward P/E has been as high as 9.70 and as low as 6.15, with a median of 8.23, all within the past year.
Investors should also note that IVZ holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IVZ's PEG compares to its industry's average PEG of 1.20. Within the past year, IVZ's PEG has been as high as 1.16 and as low as 0.76, with a median of 0.95.
Investors should also recognize that IVZ has a P/B ratio of 0.89. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. IVZ's current P/B looks attractive when compared to its industry's average P/B of 1.71. Over the past 12 months, IVZ's P/B has been as high as 1.23 and as low as 0.69, with a median of 0.91.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVZ has a P/S ratio of 1.5. This compares to its industry's average P/S of 2.59.
Finally, investors will want to recognize that IVZ has a P/CF ratio of 8.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 12.82. Over the past 52 weeks, IVZ's P/CF has been as high as 9.28 and as low as 4.94, with a median of 7.70.
These are only a few of the key metrics included in Invesco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IVZ looks like an impressive value stock at the moment.
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Should Value Investors Buy Invesco (IVZ) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.85 right now. For comparison, its industry sports an average P/E of 10.74. IVZ's Forward P/E has been as high as 9.70 and as low as 6.15, with a median of 8.23, all within the past year.
Investors should also note that IVZ holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IVZ's PEG compares to its industry's average PEG of 1.20. Within the past year, IVZ's PEG has been as high as 1.16 and as low as 0.76, with a median of 0.95.
Investors should also recognize that IVZ has a P/B ratio of 0.89. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. IVZ's current P/B looks attractive when compared to its industry's average P/B of 1.71. Over the past 12 months, IVZ's P/B has been as high as 1.23 and as low as 0.69, with a median of 0.91.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVZ has a P/S ratio of 1.5. This compares to its industry's average P/S of 2.59.
Finally, investors will want to recognize that IVZ has a P/CF ratio of 8.47. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 12.82. Over the past 52 weeks, IVZ's P/CF has been as high as 9.28 and as low as 4.94, with a median of 7.70.
These are only a few of the key metrics included in Invesco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IVZ looks like an impressive value stock at the moment.