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Should Value Investors Buy Patria Investments Limited (PAX) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Patria Investments Limited (PAX - Free Report) . PAX is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.25, while its industry has an average P/E of 14.79. Over the past 52 weeks, PAX's Forward P/E has been as high as 13.79 and as low as 8.74, with a median of 10.31.

Investors should also note that PAX holds a PEG ratio of 0.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAX's PEG compares to its industry's average PEG of 1.03. Within the past year, PAX's PEG has been as high as 0.99 and as low as 0.50, with a median of 0.57.

We should also highlight that PAX has a P/B ratio of 1.69. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.94. Within the past 52 weeks, PAX's P/B has been as high as 1.83 and as low as 1.48, with a median of 1.62.

Finally, investors will want to recognize that PAX has a P/CF ratio of 15.41. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.34. Over the past 52 weeks, PAX's P/CF has been as high as 21.80 and as low as 13.51, with a median of 16.76.

Investors could also keep in mind Victory Capital Holdings (VCTR - Free Report) , an Financial - Investment Management stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Victory Capital Holdings is trading at a forward earnings multiple of 6.96 at the moment, with a PEG ratio of 0.78. This compares to its industry's average P/E of 14.79 and average PEG ratio of 1.03.

VCTR's Forward P/E has been as high as 7.65 and as low as 5.89, with a median of 6.67. During the same time period, its PEG ratio has been as high as 2.70, as low as 0.78, with a median of 0.94.

Victory Capital Holdings also has a P/B ratio of 2.08 compared to its industry's price-to-book ratio of 2.94. Over the past year, its P/B ratio has been as high as 2.17, as low as 1.77, with a median of 2.01.

These are only a few of the key metrics included in Patria Investments Limited and Victory Capital Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, PAX and VCTR look like an impressive value stock at the moment.


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