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Is Victory Capital Holdings (VCTR) Stock Undervalued Right Now?

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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.

Victory Capital Holdings (VCTR - Free Report) is a stock many investors are watching right now. VCTR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.53, which compares to its industry's average of 12.20. Over the past year, VCTR's Forward P/E has been as high as 8.03 and as low as 5.49, with a median of 6.39.

Investors will also notice that VCTR has a PEG ratio of 0.49. 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 1.20. VCTR's PEG has been as high as 0.68 and as low as 0.48, with a median of 0.61, all within the past year.

We should also highlight that VCTR has a P/B ratio of 1.51. 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 stock's P/B looks attractive against its industry's average P/B of 1.93. Over the past 12 months, VCTR's P/B has been as high as 3.17 and as low as 1.48, with a median of 1.81.

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.


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