Invesco Mortgage Capital (IVR) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw Invesco Mortgage Capital (IVR) ending at $8.41, denoting a -0.59% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.05%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.18%.

Coming into today, shares of the real estate investment trust had lost 4.73% in the past month. In that same time, the Finance sector lost 4.85%, while the S&P 500 gained 2.76%.

The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company's upcoming EPS is projected at $0.79, signifying a 47.68% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $12.38 million, showing a 31.28% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.24 per share and a revenue of $41.48 million, signifying shifts of -39.44% and -16.54%, respectively, from the last year.

Any recent changes to analyst estimates for Invesco Mortgage Capital should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.31% rise in the Zacks Consensus EPS estimate. At present, Invesco Mortgage Capital boasts a Zacks Rank of #2 (Buy).

In terms of valuation, Invesco Mortgage Capital is presently being traded at a Forward P/E ratio of 2.61. This signifies a discount in comparison to the average Forward P/E of 8.71 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.