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Are Investors Undervaluing Victory Capital Holdings (VCTR) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One stock to keep an eye on is Victory Capital Holdings (VCTR - Free Report) . VCTR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 4.17, while its industry has an average P/E of 10.58. Over the past 52 weeks, VCTR's Forward P/E has been as high as 6.73 and as low as 3.48, with a median of 5.16.

Finally, we should also recognize that VCTR has a P/CF ratio of 12.88. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. VCTR's P/CF compares to its industry's average P/CF of 15.09. Over the past 52 weeks, VCTR's P/CF has been as high as 16.68 and as low as 5.83, with a median of 12.24.

Value investors will likely look at more than just these metrics, but the above data helps show that Victory Capital Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, VCTR sticks out at as one of the market's strongest value stocks.


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