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Are Investors Undervaluing Invesco (IVZ) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Invesco (IVZ - Free Report) . IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.75, which compares to its industry's average of 13.29. IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 6.90, all within the past year.
Investors will also notice that IVZ has a PEG ratio of 0.86. 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 1.36. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.87.
Another notable valuation metric for IVZ is its P/B ratio of 0.85. 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 1.84. Over the past year, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.82.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.84.
Finally, investors should note that IVZ has a P/CF ratio of 10.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 17.67. Within the past 12 months, IVZ's P/CF has been as high as 12.06 and as low as 7.20, with a median of 9.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Invesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IVZ feels like a great value stock at the moment.
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Are Investors Undervaluing Invesco (IVZ) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Invesco (IVZ - Free Report) . IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.75, which compares to its industry's average of 13.29. IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 6.90, all within the past year.
Investors will also notice that IVZ has a PEG ratio of 0.86. 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 1.36. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.87.
Another notable valuation metric for IVZ is its P/B ratio of 0.85. 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 1.84. Over the past year, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.82.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.4. This compares to its industry's average P/S of 2.84.
Finally, investors should note that IVZ has a P/CF ratio of 10.01. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 17.67. Within the past 12 months, IVZ's P/CF has been as high as 12.06 and as low as 7.20, with a median of 9.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Invesco is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IVZ feels like a great value stock at the moment.