Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Viking Holdings (VIK)
Viking Holdings Ltd, which went public in May 2024, is headquartered in Pembroke, Bermuda. The initial public offering of Viking Holdings was a successful one, raising $1.54 billion at around $24 per share. The new investment into the company was $245.5 million, accounting for 16% of the total funds raised. The company focuses on passenger shipping and other forms of passenger transport in North America, the United Kingdom and internationally. Viking targets English-speaking travelers aged above 55 years. The company's cruises do not allow guests under 18 years old.
VIK sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Leisure and Recreation Services industry's P/E of 19.3X, shares of Viking Holdings are trading at a forward P/E of 18.3X. VIK also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 17.6X, and a Price/Sales ratio of 3.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.02 to $2.39 per share. VIK has an average earnings surprise of 12.5%.
Investors should take the time to consider VIK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Viking Holdings Ltd. (VIK) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).