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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Invesco (IVZ - Free Report) . IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.50. This compares to its industry's average Forward P/E of 11.68. 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 8.04.
Investors should also note that IVZ holds a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IVZ's PEG compares to its industry's average PEG of 1.26. IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.93, all within the past year.
Another valuation metric that we should highlight is IVZ's P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.55. Within the past 52 weeks, IVZ's P/B has been as high as 1.10 and as low as 0.69, with a median of 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.57. This compares to its industry's average P/S of 2.45.
Finally, investors will want to recognize that IVZ has a P/CF ratio of 9.80. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 15.21. IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.73, all within the past year.
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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Should Value Investors Buy Invesco (IVZ) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Invesco (IVZ - Free Report) . IVZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.50. This compares to its industry's average Forward P/E of 11.68. 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 8.04.
Investors should also note that IVZ holds a PEG ratio of 0.78. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IVZ's PEG compares to its industry's average PEG of 1.26. IVZ's PEG has been as high as 1.16 and as low as 0.70, with a median of 0.93, all within the past year.
Another valuation metric that we should highlight is IVZ's P/B ratio of 0.78. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.55. Within the past 52 weeks, IVZ's P/B has been as high as 1.10 and as low as 0.69, with a median of 0.89.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.57. This compares to its industry's average P/S of 2.45.
Finally, investors will want to recognize that IVZ has a P/CF ratio of 9.80. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. IVZ's current P/CF looks attractive when compared to its industry's average P/CF of 15.21. IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 7.73, all within the past year.
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.