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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 $8.13, moving +0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 1%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 1.51%.

Shares of the real estate investment trust witnessed a loss of 2.06% over the previous month, trailing the performance of the Finance sector with its loss of 0.44% and outperforming the S&P 500's loss of 2.14%.

The investment community will be paying close attention to the earnings performance of Invesco Mortgage Capital in its upcoming release. The company is expected to report EPS of $0.66, down 30.53% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $14.81 million, indicating a 78.43% growth compared to the corresponding quarter of the prior year.

It is also important to note the recent changes to analyst estimates for Invesco Mortgage Capital. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Invesco Mortgage Capital is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Invesco Mortgage Capital is holding a Forward P/E ratio of 3.24. This represents a discount compared to its industry's average Forward P/E of 8.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.

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

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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