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

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Victory Capital Holdings (VCTR - Free Report) . VCTR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.19 right now. For comparison, its industry sports an average P/E of 12.78. VCTR's Forward P/E has been as high as 8.03 and as low as 6.05, with a median of 6.51, all within the past year.

Investors will also notice that VCTR has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VCTR's industry currently sports an average PEG of 1.25. Over the last 12 months, VCTR's PEG has been as high as 0.68 and as low as 0.57, with a median of 0.62.

Another notable valuation metric for VCTR is its P/B ratio of 1.76. 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 2.24. VCTR's P/B has been as high as 3.17 and as low as 1.69, with a median of 1.85, over the past year.

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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