Victory Capital (VCTR) Moves 7.6% Higher: Will This Strength Last?

Zacks Equity Research
·2-min read

Victory Capital Holdings (VCTR) shares rallied 7.6% in the last trading session to close at $29.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.2% gain over the past four weeks.

Victory Capital extended its rally for the fourth consequent day and touched a new 52-week high of $29.14 on the last day’s trading session. Bullish asset management business outlook along with continued rise in demand for passive investment strategies drove the stock.

Price and Consensus

Price Consensus Chart for VCTR
Price Consensus Chart for VCTR

This investment management firm is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +16.3%. Revenues are expected to be $210.14 million, up 2.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Victory Capital, the consensus EPS estimate for the quarter has been revised 2.8% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VCTR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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