Zacks has identified Invesco Mortgage Capital (IVR) as a compelling value investment, assigning it a Zacks Rank #2 (Buy) and a Value grade of A. The company's valuation metrics, including a P/E ratio of 3.7, P/B of 0.9, P/S of 1.75, and P/CF of 15.61, are notably below their respective industry averages of 8.12, 1.00, 2.27, and 17.78. These favorable comparisons suggest IVR is currently undervalued, presenting a potential opportunity for value-focused investors.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Should Value Investors Buy Invesco Mortgage Capital (IVR) Stock? Read MoreHide Full Article 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 sporting a Zacks Rank 2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.7, which compares to its industry's average of 8.12. 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. Investors should also recognize that IVR has a P/B ratio of 0.9. 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. This stock's P/B looks attractive against its industry's average P/B of 1.00. Over the past year, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IVR has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.27. Finally, our model also underscores that IVR has a P/CF ratio of 15.61. 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. IVR's P/CF compares to its industry's average P/CF of 17.78. Within the past 12 months, IVR's P/CF has been as high as 17.16 and as low as -8.89, with a median of 11.14. These are just a handful of the figures considered in Invesco Mortgage Capital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IVR is an impressive value stock right now. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Image: Bigstock 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 sporting a Zacks Rank 2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.7, which compares to its industry's average of 8.12. 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. Investors should also recognize that IVR has a P/B ratio of 0.9. 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. This stock's P/B looks attractive against its industry's average P/B of 1.00. Over the past year, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IVR has a P/S ratio of 1.75. This compares to its industry's average P/S of 2.27. Finally, our model also underscores that IVR has a P/CF ratio of 15.61. 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. IVR's P/CF compares to its industry's average P/CF of 17.78. Within the past 12 months, IVR's P/CF has been as high as 17.16 and as low as -8.89, with a median of 11.14. These are just a handful of the figures considered in Invesco Mortgage Capital's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IVR is an impressive value stock right now. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Invesco Mortgage Capital (IVR) has been designated a strong value proposition by Zacks, evidenced by a 2 (Buy) rank and an 'A' grade for Value. The company's valuation appears significantly discounted relative to its industry peers across multiple metrics. Its price-to-earnings (P/E) ratio stands at 3.7, substantially below the industry average of 8.12. Furthermore, IVR trades at a price-to-book (P/B) ratio of 0.9, indicating its market value is below its book value, while the industry average is 1.00. This discount also extends to its price-to-sales (P/S) ratio of 1.75 versus the industry's 2.27 and its price-to-cash flow (P/CF) ratio of 15.61 compared to the industry's 17.78. Historical data shows that while current valuation levels are above their 12-month medians, they remain below recent peaks, suggesting potential for further appreciation. The combination of these favorable valuation multiples and a positive earnings outlook implied by the Zacks rank underpins the thesis that the stock is currently undervalued.
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