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Are Investors Undervaluing Invesco (IVZ) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.74 right now. For comparison, its industry sports an average P/E of 12.13. Over the past 52 weeks, IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 7.70.
We also note that IVZ holds a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IVZ's industry currently sports an average PEG of 1.24. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.92.
Another notable valuation metric for IVZ is its P/B ratio of 0.83. The P/B ratio pits a stock's market value against 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 1.84. Over the past year, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.81.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.43. This compares to its industry's average P/S of 2.41.
Finally, investors should note that IVZ has a P/CF ratio of 11.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IVZ's P/CF compares to its industry's average P/CF of 17.67. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 9.01.
These are just a handful of the figures considered in Invesco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IVZ is an impressive value stock right now.
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Are Investors Undervaluing Invesco (IVZ) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Invesco (IVZ - Free Report) is a stock many investors are watching right now. IVZ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.74 right now. For comparison, its industry sports an average P/E of 12.13. Over the past 52 weeks, IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 7.70.
We also note that IVZ holds a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IVZ's industry currently sports an average PEG of 1.24. Over the last 12 months, IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.92.
Another notable valuation metric for IVZ is its P/B ratio of 0.83. The P/B ratio pits a stock's market value against 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 1.84. Over the past year, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.81.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IVZ has a P/S ratio of 1.43. This compares to its industry's average P/S of 2.41.
Finally, investors should note that IVZ has a P/CF ratio of 11.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. IVZ's P/CF compares to its industry's average P/CF of 17.67. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 4.94, with a median of 9.01.
These are just a handful of the figures considered in Invesco's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that IVZ is an impressive value stock right now.