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4 Reasons to Add Victory Capital (VCTR) Stock to Your Portfolio
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It seems to be a wise idea to add Victory Capital Holdings, Inc. (VCTR - Free Report) stock to your portfolio now. Supported by strong fundamentals, the company is well-poised for growth. The sound positioning of its integrated multi-boutique business model in a rapidly evolving industry and the effectiveness of its distribution platform will continue to support its performance.
Analysts seem optimistic regarding the company’s earnings growth potential. The Zacks Consensus Estimate for VCTR’s current-year earnings has been revised 1.7% upward over the past 30 days. Thus, currently, VCTR carries a Zacks Rank #2 (Buy).
Over the past six months, VCTR shares have gained 53.3% compared with the industry’s growth of 23.5%.
Image Source: Zacks Investment Research
Some other factors mentioned below make Victory Capital an attractive investment option now.
Earnings Strength: Over the last three to five years, the company witnessed earnings growth of 19%, higher than the industry average of 5.9%. The upward trend is expected to continue in the near term. In 2024 and 2025, VCTR’s earnings are projected to grow 16.6% and 14.1%, respectively. Its long-term (three-five years) projected earnings growth rate of 21.8% promises rewards for investors.
Moreover, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three and matched in one of the trailing four quarters, the average beat being 1.9%.
Revenue Growth: Supported by an impressive assets under management (AUM) balance, Victory Capital’s revenues witnessed a compound annual growth rate (CAGR) of 7.6% over the last four years (2019-2023), with the uptrend continuing in the first quarter of 2024.
In 2024 and 2025, revenues are projected to grow 10.9% and 7.6%, respectively, indicating continuation in the upward trend.
Superior Return on Equity (ROE): VCTR’s ROE of 29.36% compares favorably with the industry average of 13.80%. This highlights the company’s commendable position over its peers in using shareholders’ funds.
Favorable Valuation: With respect to its price/earnings (P/E) and price/cash flow (P/CF) ratios, the stock seems undervalued right now. Its P/E (F1) ratio is 9.26, lower than the industry average of 10.26. Similarly, its P/CF ratio of 9.08 compares favorably with the industry’s 10.16.
Moreover, VCTR currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Key Picks
A couple of other top-ranked stocks from the same space are T. Rowe Price Group, Inc. (TROW - Free Report) and Artisan Partners Asset Management Inc. (APAM - Free Report) .
Earnings estimates for TROW have been revised 12.9% upward for the current year over the past 60 days. The company’s share price has increased 15% over the past six months. TROW currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Artisan Partners presently carries a Zacks Rank of 2. Its earnings estimates have been revised upward by 3.4% for the current year over the past 60 days. In the last six months, APAM’s share price increased 16%.
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4 Reasons to Add Victory Capital (VCTR) Stock to Your Portfolio
It seems to be a wise idea to add Victory Capital Holdings, Inc. (VCTR - Free Report) stock to your portfolio now. Supported by strong fundamentals, the company is well-poised for growth. The sound positioning of its integrated multi-boutique business model in a rapidly evolving industry and the effectiveness of its distribution platform will continue to support its performance.
Analysts seem optimistic regarding the company’s earnings growth potential. The Zacks Consensus Estimate for VCTR’s current-year earnings has been revised 1.7% upward over the past 30 days. Thus, currently, VCTR carries a Zacks Rank #2 (Buy).
Over the past six months, VCTR shares have gained 53.3% compared with the industry’s growth of 23.5%.
Image Source: Zacks Investment Research
Some other factors mentioned below make Victory Capital an attractive investment option now.
Earnings Strength: Over the last three to five years, the company witnessed earnings growth of 19%, higher than the industry average of 5.9%. The upward trend is expected to continue in the near term. In 2024 and 2025, VCTR’s earnings are projected to grow 16.6% and 14.1%, respectively. Its long-term (three-five years) projected earnings growth rate of 21.8% promises rewards for investors.
Moreover, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three and matched in one of the trailing four quarters, the average beat being 1.9%.
Revenue Growth: Supported by an impressive assets under management (AUM) balance, Victory Capital’s revenues witnessed a compound annual growth rate (CAGR) of 7.6% over the last four years (2019-2023), with the uptrend continuing in the first quarter of 2024.
In 2024 and 2025, revenues are projected to grow 10.9% and 7.6%, respectively, indicating continuation in the upward trend.
Superior Return on Equity (ROE): VCTR’s ROE of 29.36% compares favorably with the industry average of 13.80%. This highlights the company’s commendable position over its peers in using shareholders’ funds.
Favorable Valuation: With respect to its price/earnings (P/E) and price/cash flow (P/CF) ratios, the stock seems undervalued right now. Its P/E (F1) ratio is 9.26, lower than the industry average of 10.26. Similarly, its P/CF ratio of 9.08 compares favorably with the industry’s 10.16.
Moreover, VCTR currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Key Picks
A couple of other top-ranked stocks from the same space are T. Rowe Price Group, Inc. (TROW - Free Report) and Artisan Partners Asset Management Inc. (APAM - Free Report) .
Earnings estimates for TROW have been revised 12.9% upward for the current year over the past 60 days. The company’s share price has increased 15% over the past six months. TROW currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Artisan Partners presently carries a Zacks Rank of 2. Its earnings estimates have been revised upward by 3.4% for the current year over the past 60 days. In the last six months, APAM’s share price increased 16%.