Shares of Victory Capital Holdings (VCTR) have been strong performers lately, with the stock up 17.3% over the past month. The stock hit a new 52-week high of $109.93 in the previous session. Victory Capital has gained 71.4% since the start of the year compared to the 8.5% gain for the Zacks Finance sector and the -5.9% return for the Zacks Financial - Investment Management industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 5, 2026, Victory Capital reported EPS of $2.21 versus consensus estimate of $1.81.
For the current fiscal year, Victory Capital is expected to post earnings of $7.51 per share on $1.6 in revenues. This represents a 17.71% change in EPS on a 22.51% change in revenues. For the next fiscal year, the company is expected to earn $8.14 per share on $1.68 in revenues. This represents a year-over-year change of 8.31% and 5.09%, respectively.
Valuation Metrics
Though Victory Capital has recently hit a 52-week high, what is next for Victory Capital? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Victory Capital has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 11.9X versus its peer group's average of 10.9X. Additionally, the stock has a PEG ratio of 1.24. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Victory Capital currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Victory Capital fits the bill. Thus, it seems as though Victory Capital shares could have a bit more room to run in the near term.
How Does VCTR Stack Up to the Competition?
Shares of VCTR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Ameriprise Financial, Inc. (AMP). AMP has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Ameriprise Financial, Inc. beat our consensus estimate by 3.26%, and for the current fiscal year, AMP is expected to post earnings of $46.12 per share on revenue of $19.91 billion.
Shares of Ameriprise Financial, Inc. have gained 8.9% over the past month, and currently trade at a forward P/E of 11.97X and a P/CF of 13.6X.
The Financial - Investment Management industry is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for VCTR and AMP, even beyond their own solid fundamental situation.
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