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Should Value Investors Buy Victory Capital Holdings (VCTR) Stock?

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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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Victory Capital Holdings (VCTR - Free Report) is a stock many investors are watching right now. VCTR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 4.59. This compares to its industry's average Forward P/E of 11.17. Over the past 52 weeks, VCTR's Forward P/E has been as high as 8.03 and as low as 4.59, with a median of 6.30.

We also note that VCTR holds a PEG ratio of 0.41. 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 PEG compares to its industry's average PEG of 1.10. VCTR's PEG has been as high as 0.68 and as low as 0.41, with a median of 0.60, all within the past year.

Investors should also recognize that VCTR has a P/B ratio of 1.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.83. Over the past year, VCTR's P/B has been as high as 3.17 and as low as 1.28, with a median of 1.79.

These are only a few of the key metrics included in Victory Capital Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VCTR looks like an impressive value stock at the moment.


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