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Invesco Mortgage Capital (IVR) Gains But Lags Market: What You Should Know

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Invesco Mortgage Capital (IVR - Free Report) closed the most recent trading day at $10.94, moving +1.96% from the previous trading session. This change lagged the S&P 500's 2.6% gain on the day.

Prior to today's trading, shares of the real estate investment trust had lost 30.28% over the past month. This has lagged the Finance sector's loss of 12.55% and the S&P 500's loss of 12.9% in that time.

Invesco Mortgage Capital will be looking to display strength as it nears its next earnings release. In that report, analysts expect Invesco Mortgage Capital to post earnings of $0.96 per share. This would mark a year-over-year decline of 4%.

Investors should also note any recent changes to analyst estimates for Invesco Mortgage Capital. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Invesco Mortgage Capital currently has a Zacks Rank of #3 (Hold).

Investors should also note Invesco Mortgage Capital's current valuation metrics, including its Forward P/E ratio of 2.43. For comparison, its industry has an average Forward P/E of 7.09, which means Invesco Mortgage Capital is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 193, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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