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Invesco Mortgage Capital (IVR) closed the latest trading day at $6.35, indicating a +0.32% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.81%. Meanwhile, the Dow experienced a rise of 1.56%, and the technology-dominated Nasdaq saw an increase of 2.06%.
Shares of the real estate investment trust have depreciated by 25.44% over the course of the past month, underperforming the Finance sector's loss of 4.82% and the S&P 500's loss of 6.14%.
Analysts and investors alike will be keeping a close eye on the performance of Invesco Mortgage Capital in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.56, marking a 34.88% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.79 million, showing a 111.29% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.22 per share and a revenue of $92.8 million, demonstrating changes of -22.92% and +151.99%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Invesco Mortgage Capital. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.04% lower. At present, Invesco Mortgage Capital boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Invesco Mortgage Capital is presently trading at a Forward P/E ratio of 2.86. This signifies a discount in comparison to the average Forward P/E of 7.02 for its industry.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 8% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.