IVZ Among Top-Performing S&P 500 Asset Managers in 2025: Is It a Buy?

The performance of the Invesco IVZ stock has been impressive in 2025. With a 53.5% rally, the company has become one of the top-performing S&P 500 asset managers this year, outpacing the S&P 500 index’s growth of 20.1% and the industry’s 10.9% decline.If we look at the price performance of two of IVZ’s close peers, T. Rowe Price TROW and Franklin Resources, Inc. BEN, it appears that Invesco has fared better than them. In 2025, the BEN stock has gained 20.2%, whereas TROW shares have lost 7.6%.2025 Price Performance Image Source: Zacks Investment Research Now, the question arises whether investors should buy the IVZ stock now, given its impressive price performance. Before taking any investment decision, it is advised to look at the fundamentals and growth prospects of the company to clearly understand its risks and rewards.Invesco’s Positives to NoteRobust AUM Balance: IVZ has been witnessing a consistent improvement in its assets under management (AUM) balance. Though the company’s total AUM declined in 2022, the metric witnessed a compound annual growth rate (CAGR) of 8.5% in the last five years ended 2024, with the uptrend continuing in the first nine months of 2025.The 2019 acquisition of OppenheimerFunds resulted in a substantial rise in the company's AUM, making it one of the leading global asset managers. Also, Invesco has been capitalizing on the growing demand for passive products, which constituted 47.4% of total AUM as of Sept. 30, 2025.In April 2025, IVZ collaborated with MassMutual’s subsidiary, Barings, to boost its private credit offerings. Also, the company has been seeking shareholder approval to convert the Invesco QQQ Trust from a unit investment trust (UIT) to an open-end ETF, enabling it to earn revenues and profits instead of just recouping marketing costs.QQQ has operated under a legacy UIT structure since its 1999 launch, which helped establish the fund but now restricts reinvesting dividends, securities lending and other efficiencies. As ETFs have evolved, UITs have become costlier and less flexible. The reclassification aims to align QQQ with today’s open-end ETF model to unlock operational efficiencies and reduce the expense ratio. The move aligns with IVZ’s efforts to grow its AUM balance.Improving Operating Efficiency: Invesco has been undertaking initiatives to improve operating efficiency. The company exceeded its target of realizing net cost synergies from the OppenheimerFunds acquisition and achieved $200 million in annualized net savings well ahead of schedule. In August 2025, it announced a deal to sell Intelliflo, which it had acquired in 2018, to Carlyle Group to boost efficiency. While adjusted operating expenses increased in 2023 and in the first nine months of 2025, the metric declined 2.2% in 2024.Management’s continuous efforts to manage its expenses prudently will likely lead to higher operating leverage going forward.Solid Global Presence: Apart from a strong presence in the United States, Invesco maintains a solid foothold in Europe, Canada and the Asia Pacific. As of Sept. 30, 2025, the company’s client AUM outside the United States constituted 31% of the total AUM. The acquisition of Europe-based Source, a leading, independent specialist provider of ETFs, will drive Invesco’s global presence.Also, the sale of the majority stake in the India business to establish a joint venture will strengthen IVZ’s Asia presence, while allowing capital allocation to more profitable projects. These and other diversification efforts will likely help the company generate further momentum from its business outside the United States.Strong Balance Sheet Position: As of Sept. 30, 2025, Invesco had total debt, including debt of consolidated investment products (CIP), of $9.94 billion, significantly higher than cash and cash equivalents of $973.1 million.Additionally, the company maintains a stable outlook and investment-grade long-term senior debt ratings of A3, BBB+ and A from Moody’s Investors Service, S&P Ratings and Fitch Ratings, respectively. This renders the company favorable access to the debt market.This also enables Invesco to pursue efficient capital distributions. In April 2025, the company announced a 2.4% hike in its quarterly dividend to 21 cents per share. The company has been consistently raising its quarterly dividends. It hiked dividends six times in the last five years, with a dividend payout ratio of 44%.Similarly, both T. Rowe Price and Franklin Resources have increased their dividends five times over the past five years.Invesco’s Near-Term HeadwindsMuted Top Line: Invesco's top-line growth has been weak. Though total operating revenues increased in 2024 and the first nine months of 2025, the metric has been recording a downtrend since the second half of 2020.Despite having a robust institutional pipeline, diverse product offerings, alternative investment strategies and solid retail channels, revenues are likely to be under pressure in the near term due to a challenging operating backdrop.Significant Intangible Assets: As of Sept. 30, 2025, Invesco’s goodwill and net intangible assets remained considerably high, totaling $14.2 billion (49.9% of total assets). Several factors may initiate the impairment of the book value of such assets, due to which their value may have to be written down. This is expected to negatively impact the company’s financials. In 2023, amortization and impairment of intangible assets-related charges significantly hampered the company’s financials, resulting in a net loss.Analyzing IVZ’s Earnings Estimates & ValuationOver the past 60 days, the Zacks Consensus Estimate for IVZ’s 2025 and 2026 earnings has been revised higher, reflecting that analysts are optimistic regarding the company’s earnings growth potential. The earnings estimate of $1.94 per share for 2025 indicates year-over-year growth of 13.5%. The 2026 estimate of $2.60 indicates growth of 34.2%.Earnings Estimate Revision Image Source: Zacks Investment Research From a valuation perspective, the IVZ stock is currently trading at a forward 12-month price/earnings (P/E) ratio of 10.31X. This is below the industry average of 14.91X over the past five years, reflecting that the IVZ stock is relatively less expensive than its peers.P/E (F12M) Image Source: Zacks Investment Research Final Thoughts on Invesco StockThe QQQ reclassification, a solid global presence and a strong balance sheet are expected to keep supporting Invesco’s financials. Improving operating efficiency will further aid profitability. This is reflected in the bullish analyst sentiments. An attractive valuation adds another layer of optimism.However, a subdued top line amid a tough operating backdrop and the company’s significant exposure to intangible assets remain concerning.Thus, investors should not rush to buy the IVZ stock now. Investors should assess how Invesco addresses its issues before they decide to invest in it. Nevertheless, those who already own the stock should continue holding onto it for long-term gains.Currently, IVZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin Resources, Inc. (BEN): Free Stock Analysis Report T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks