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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.
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.
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 a P/E ratio of 6.76, which compares to its industry's average of 13.36. Over the last 12 months, IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 7.64.
Investors should also note that IVZ holds a PEG ratio of 0.79. 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 1.37. IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.90, all within the past year.
Investors should also recognize that IVZ has a P/B ratio of 0.84. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.84. Over the past 12 months, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IVZ has a P/S ratio of 1.46. This compares to its industry's average P/S of 2.51.
Finally, our model also underscores that IVZ has a P/CF ratio of 11.89. 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 17.67. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 7.20, with a median of 9.27.
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?
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.
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.
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 a P/E ratio of 6.76, which compares to its industry's average of 13.36. Over the last 12 months, IVZ's Forward P/E has been as high as 9.14 and as low as 5.79, with a median of 7.64.
Investors should also note that IVZ holds a PEG ratio of 0.79. 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 1.37. IVZ's PEG has been as high as 1.16 and as low as 0.69, with a median of 0.90, all within the past year.
Investors should also recognize that IVZ has a P/B ratio of 0.84. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.84. Over the past 12 months, IVZ's P/B has been as high as 0.98 and as low as 0.69, with a median of 0.82.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IVZ has a P/S ratio of 1.46. This compares to its industry's average P/S of 2.51.
Finally, our model also underscores that IVZ has a P/CF ratio of 11.89. 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 17.67. Over the past 52 weeks, IVZ's P/CF has been as high as 12.06 and as low as 7.20, with a median of 9.27.
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.