Back to top

Image: Bigstock

Should Value Investors Buy Victory Capital Holdings (VCTR) Stock?

Read MoreHide Full Article

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Victory Capital Holdings (VCTR - Free Report) . VCTR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.60, while its industry has an average P/E of 15.58. Over the past year, VCTR's Forward P/E has been as high as 7.65 and as low as 5.89, with a median of 6.73.

Investors will also notice that VCTR has a PEG ratio of 0.51. 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. VCTR's industry currently sports an average PEG of 0.86. VCTR's PEG has been as high as 1.20 and as low as 0.48, with a median of 0.91, all within the past year.

Another notable valuation metric for VCTR is its P/B ratio of 2.49. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.22. Over the past year, VCTR's P/B has been as high as 2.49 and as low as 1.77, with a median of 2.05.

Finally, investors should note that VCTR has a P/CF ratio of 10.42. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 17.72. VCTR's P/CF has been as high as 10.42 and as low as 6.38, with a median of 8.32, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Victory Capital Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, VCTR sticks out at as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Victory Capital Holdings, Inc. (VCTR) - free report >>

Published in