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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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 10.36. Over the past 52 weeks, IVZ's Forward P/E has been as high as 10.16 and as low as 6.15, with a median of 8.55.
We also note that IVZ holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.19. IVZ's PEG has been as high as 1.14 and as low as 0.76, with a median of 0.94, all within the past year.
Another notable valuation metric for IVZ is its P/B ratio of 0.96. Investors use the P/B ratio to look at a stock's market value versus 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 1.79. Within the past 52 weeks, IVZ's P/B has been as high as 1.37 and as low as 0.69, with a median of 0.96.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVZ has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that IVZ has a P/CF ratio of 8.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. IVZ's P/CF compares to its industry's average P/CF of 13.11. Over the past 52 weeks, IVZ's P/CF has been as high as 9.87 and as low as 4.94, with a median of 7.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Invesco is likely undervalued currently. And when considering the strength of its earnings outlook, IVZ sticks out at as one of the market's strongest value stocks.
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Is Invesco (IVZ) Stock Undervalued Right Now?
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 10.36. Over the past 52 weeks, IVZ's Forward P/E has been as high as 10.16 and as low as 6.15, with a median of 8.55.
We also note that IVZ holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.19. IVZ's PEG has been as high as 1.14 and as low as 0.76, with a median of 0.94, all within the past year.
Another notable valuation metric for IVZ is its P/B ratio of 0.96. Investors use the P/B ratio to look at a stock's market value versus 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 1.79. Within the past 52 weeks, IVZ's P/B has been as high as 1.37 and as low as 0.69, with a median of 0.96.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. IVZ has a P/S ratio of 1.68. This compares to its industry's average P/S of 2.81.
Finally, we should also recognize that IVZ has a P/CF ratio of 8.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. IVZ's P/CF compares to its industry's average P/CF of 13.11. Over the past 52 weeks, IVZ's P/CF has been as high as 9.87 and as low as 4.94, with a median of 7.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Invesco is likely undervalued currently. And when considering the strength of its earnings outlook, IVZ sticks out at as one of the market's strongest value stocks.