One of the Best Swing Trading Stocks Ever Is Offering Another Big Opportunity
Buying this name when the market mood is sour and selling when it is euphoric has proven to be a winning strategy. I was a big buyer during the Monday's market plunge.
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Invesco IVZ is an international asset management company best known for its QQQ ETF. Its shares are extremely market-sensitive (beta = 1.50 source: Value Line).
Less than six weeks ago IVZ fetched $19.55 and sat at a new 52-week peak. Intraday on Mar. 10, 2025 IVZ touched $14.68 before rebounding slightly to close at $14.82. That top to bottom move represented a stunning almost 25% decline.
The one-year chart below shows how often IVZ drops down and back up. Note how quickly those moves can play out.
Buying IVZ when the market mood is sour and selling when it is euphoric has proven to be a winning strategy. Better still, IVZ pays a generous quarterly dividend of 20.5-cents, providing a fabulous 5.53% current yield at $14.82.
The mood has rarely been more negative than it is right now. That means many shareholders are willing to sell at extremely favorable (for buyers) prices.
Traders holding IVZ on its four annual ex-dividend dates add substantially to its total return potential.
Invesco’s volatility is not just a recent phenomenon. Its four-year chart shows multiple ups and downs as well.
I have detailed the latest six major trading moves since June 2016, below.
Including the Covid-panic selloff saw those six rebounds average gains of 102.03% on average holding periods of 8.33 months.
Note: I wrote up IVZ here back in the spring of 2020 suggesting it could triple or quadruple. It exceeded my target, rising from $6.39 to $29.87 over the next 14 months.
Throw out the exaggerated 367.4% gain from April 2020 and the other five upturns averaged +48.96% over average holding periods of just 7.2 months.
None of those figures include dividend income.
Are there any readers out there who wouldn’t be happy with results like that?
I was a big buyer of IVZ during the March 10, 2025 market plunge which took the DJIA down by about 1,200 points at its worst moment.
What Is IVZ Worth Based on Fundamentals?
Since 2016, Invesco has traded at an average P/E multiple of 12.5x, accompanied by around 4.54% in yield.
With $1.87 as Yahoo Finance’s 2025 EPS estimate for IVZ simply returning to a normalized P/E delivers a $23.37 January of 2026 price target. That suggests around 57% in upside potential plus any dividends received along the way.
That goal is not farfetched. IVZ exceeded that price during five of the most recent nine calendar years.
Value Line’s 18-month and 3-to 5-year mid-range target prices for IVZ are $26 and $30, respectively.
Quantitively focused FAST graphs calls IVZ’s normalized P/E as higher than 19 times. That seems high to me, so I included 12-month target prices from it at 15, 17 and 19 times their 2025 EPS estimate for IVZ.
You would not need to reach those levels to be quite happy to own high-yielding IVZ.
Yahoo Finance takes a more conservative view on Invesco than FAST graphs. It calls for IVZ to rebound to $19.70 by this time next year. That implies the shares trade for less than 10.6 times this year’s estimate, making their goal price appear somewhat pessimistic based on IVZ’s actual history.
Even so, reaching that modest level will deliver north of 37% in total return if it takes a full year to get there.
TipRanks stable of analysts see a low range 12-month goal of $18, a middle-range target of $19.95 target, and a more aggressive $22 price point for IVZ over the coming year.
That middle of the road view would provide a greater than 40% total return.
Even the low-end price of $18 would make for 26.2% in total return from IVZ’s $14.82 quote. Reaching $22 puts that TR figure at about 54%.
What else do you need to know?
IVZ is remarkably cheap, pays a better-than-CD-rate just for holding and offers substantial upside.
The contrarian signal (ultra-high investor bearishness) suggests we are at, or near, a major turning point after a brutal three-month selloff.
Owning IVZ now appears to be a low-downside, high total return play with a proven history of tradable moves.
At the the time of publication, Price was long IVZ shares, short IVZ put options.
