10 Cheap Asset Management Stocks to Buy Now

5. Victory Capital Holdings Inc. (NASDAQ:VCTR)

Forward P/E: 10.0

Upside Potential: 16%

Number of Hedge Fund Holders: 21

Victory Capital Holdings Inc. (NASDAQ:VCTR) is a diversified global asset manager that provides specialized investment solutions to institutions, financial intermediaries, retirement platforms, and individual investors. Through its 11 autonomous Investment Franchises and a Solutions Platform, the company offers a wide range of investment products.

As of February 2025, Victory Capital Holdings Inc. (NASDAQ:VCTR) managed $176 billion in AUM and had $180 billion in total client assets. The company is in the process of finalizing its acquisition of the U.S. assets of Amundi Asset Management S.A.S., with the deal expected to close by the end of March. This acquisition is intended to broaden the company’s investment capabilities and enhance its U.S. intermediary distribution efforts, reinforcing its position in the asset management industry.

Victory Capital Holdings Inc. (NASDAQ:VCTR)’s strong financial performance has received positive reactions from analysts. On February 20, a BofA analyst raised the company’s price target from $88 to $89, maintaining a Buy rating after the company reported adjusted EPS of $1.45, surpassing expectations. The earnings beat was primarily driven by higher share repurchases and lower taxes, leading the analyst to revise EPS estimates upward for FY 2025, 2026, and 2027. Similarly, on February 10, a BMO Capital analyst increased the price target from $73 to $82, maintaining an Outperform rating. The analyst highlighted Victory Capital’s improving net flows, the strategic and financial benefits of the Amundi U.S. acquisition, and its consistent execution in margin expansion as key factors supporting a positive outlook.