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

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Victory Capital Holdings (VCTR - Free Report) . VCTR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.59, which compares to its industry's average of 12.42. Over the last 12 months, VCTR's Forward P/E has been as high as 8.03 and as low as 5.15, with a median of 6.35.

We also note that VCTR holds a PEG ratio of 0.49. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VCTR's industry currently sports an average PEG of 1.23. Within the past year, VCTR's PEG has been as high as 0.68 and as low as 0.46, with a median of 0.61.

Investors should also recognize that VCTR has a P/B ratio of 1.53. The P/B ratio pits a stock's market value against 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. Over the past year, VCTR's P/B has been as high as 3.17 and as low as 1.41, with a median of 1.80.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Victory Capital Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VCTR feels like a great value stock at the moment.


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