Are Investors Undervaluing These Finance Stocks Right Now?

SAMG VCTR

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Silvercrest Asset Management Group (SAMG - Free Report) is a stock many investors are watching right now. SAMG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.13, which compares to its industry's average of 13.67. Over the past 52 weeks, SAMG's Forward P/E has been as high as 10.18 and as low as 7.90, with a median of 8.78.

Another valuation metric that we should highlight is SAMG's P/B ratio of 2.25. 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 solid versus its industry's average P/B of 2.85. Over the past year, SAMG's P/B has been as high as 2.38 and as low as 1.85, with a median of 2.11.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SAMG has a P/S ratio of 1.95. This compares to its industry's average P/S of 3.02.

Finally, our model also underscores that SAMG has a P/CF ratio of 10.76. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.29. Over the past 52 weeks, SAMG's P/CF has been as high as 15.35 and as low as 9.20, with a median of 10.61.

If you're looking for another solid Financial - Investment Management value stock, take a look at Victory Capital Holdings (VCTR - Free Report) . VCTR is a # 2 (Buy) stock with a Value score of A.

Shares of Victory Capital Holdings are currently trading at a forward earnings multiple of 7.33 and a PEG ratio of 0.74 compared to its industry's P/E and PEG ratios of 13.67 and 0.69, respectively.

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