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Are Investors Undervaluing Invesco (IVZ) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Invesco (IVZ - Free Report) . IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.99 right now. For comparison, its industry sports an average P/E of 10.91. Over the last 12 months, IVZ's Forward P/E has been as high as 9.14 and as low as 5.86, with a median of 8.11.
We also note that IVZ holds a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.18. Within the past year, IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.94.
Another notable valuation metric for IVZ is its P/B ratio of 0.71. 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. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past 12 months, IVZ's P/B has been as high as 1.11 and as low as 0.69, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.42. This compares to its industry's average P/S of 2.55.
Finally, we should also recognize that IVZ has a P/CF ratio of 8.95. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.77. Within the past 12 months, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.71.
These are only a few of the key metrics included in Invesco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IVZ looks like an impressive value stock at the moment.
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Are Investors Undervaluing Invesco (IVZ) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Invesco (IVZ - Free Report) . IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.99 right now. For comparison, its industry sports an average P/E of 10.91. Over the last 12 months, IVZ's Forward P/E has been as high as 9.14 and as low as 5.86, with a median of 8.11.
We also note that IVZ holds a PEG ratio of 0.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IVZ's industry currently sports an average PEG of 1.18. Within the past year, IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.94.
Another notable valuation metric for IVZ is its P/B ratio of 0.71. 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. This stock's P/B looks solid versus its industry's average P/B of 1.41. Over the past 12 months, IVZ's P/B has been as high as 1.11 and as low as 0.69, with a median of 0.90.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.42. This compares to its industry's average P/S of 2.55.
Finally, we should also recognize that IVZ has a P/CF ratio of 8.95. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.77. Within the past 12 months, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.71.
These are only a few of the key metrics included in Invesco's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, IVZ looks like an impressive value stock at the moment.