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Here's Why Victory Capital Stock is a Solid Bet Right Now

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From the vast universe of banking stocks, today we pick Victory Capital Holdings, Inc. (VCTR - Free Report) for you. The company offers a profitable investment opportunity based on steady revenue growth and robust fundamentals.

The stock has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for 2019 and 2020 displayed an upward trend.

Further, this Zacks Rank #2 (Buy) stock has gained 45.4% year to date as against the industry’s decline of 5.6%.



Why Victory Capital is an Attractive Pick

Revenue Strength: Victory Capital continues to witness top-line improvement. Since 2015, the company has recorded consistent increase in sales, witnessing four-year compound annual growth rate (CAGR) of nearly 19.7% in 2018.

The company’s projected sales growth (F1/F0) of 50.24% (against the nil industry average) indicates constant upward momentum in revenues.

Superior ROE: Victory Capital’s Return on Equity (ROE) ratio is 22.15% compared with the industry average of 13.12%. This indicates that the company reinvests more efficiently compared with the industry.

Stock Looks Undervalued: The stock currently has a Value Score of A. 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 Stocks to Consider

Apollo Global Management, LLC (APO - Free Report) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #2 Ranked stock has rallied more than 45%, year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.

Great Elm Capital Group, Inc. (GECC - Free Report) has been witnessing upward estimate revisions for the past 60 days. Further, the company’s shares have gained 4.5%, year to date. At present, it carries a Zacks Rank of 2.

KKR & Co. Inc. (KKR - Free Report) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 29.3%, year to date. It currently carries a Zacks Rank #2.

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