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Should Value Investors Buy Victory Capital Holdings (VCTR) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 - Free Report) . VCTR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.81. This compares to its industry's average Forward P/E of 14.17. Over the past year, VCTR's Forward P/E has been as high as 7.19 and as low as 4.69, with a median of 5.88.

Another notable valuation metric for VCTR is its P/B ratio of 1.98. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.88. Over the past year, VCTR's P/B has been as high as 2.62 and as low as 1.49, with a median of 1.86.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. VCTR has a P/S ratio of 2.44. This compares to its industry's average P/S of 2.67.

These are just a handful of the figures considered in Victory Capital Holdings's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VCTR is an impressive value stock right now.


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