Should Value Investors Buy Victory Capital Holdings (VCTR) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Victory Capital Holdings (VCTR). VCTR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.23, while its industry has an average P/E of 12.88. VCTR's Forward P/E has been as high as 7.42 and as low as 4.69, with a median of 6.03, all within the past year.
We should also highlight that VCTR has a P/B ratio of 1.87. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. VCTR's current P/B looks attractive when compared to its industry's average P/B of 2.50. VCTR's P/B has been as high as 2.15 and as low as 1.49, with a median of 1.84, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. VCTR has a P/S ratio of 2.28. This compares to its industry's average P/S of 2.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Victory Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VCTR feels like a great value stock at the moment.
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Victory Capital Holdings, Inc. (VCTR) : Free Stock Analysis Report
