Victory Capital Holdings experienced a 10% decline in their stock price over the past week—a notable move amidst significant shifts. The company announced a major transition in its auditing practice as Deloitte & Touche LLP replaced Ernst & Young LLP as the new auditor effective after the completion of statutory audits for 2024. While this change was proactive, the news arrives amid wider market turbulence attributed to heightened U.S. tariffs on Canadian steel and aluminum, leading to broader market caution. The Dow Jones and S&P 500 both dropped 1.2% and 0.8%, respectively, as investor concerns over tariff-related economic slowdowns increased, impacting corporate operations with global footprints. Victory Capital's significant price decrease aligns with the Nasdaq Composite's biggest decline since 2022, suggesting sensitivity to economic and policy shifts. These broader market downturns contrast with the past year's market gains of 8.8%, highlighting momentary challenges for firms like Victory Capital.

Unlock comprehensive insights into our analysis of Victory Capital Holdings stock here.

The last five years have seen Victory Capital Holdings deliver a substantial total return of 376.33%, reflecting strong performance over an extended period. This impressive growth is supported by robust earnings acceleration, with recent annual earnings growth significantly outpacing its five-year average. The company's high-quality earnings and strategic financial management have been key contributors, as evidenced by increased dividends and a significant share repurchase program of US$94.29 million completed last December. Meanwhile, Victory Capital's focus on value, with its Price-To-Earnings Ratio assessing favorably against industry averages, is another factor likely underpinning its long-term gains.

Moreover, strategic endeavors such as the Memorandum of Understanding with Amundi in April 2024 highlight Victory Capital's ambition for global expansion, potentially enhancing future growth opportunities. Additionally, recent earnings announcements indicate continued upward momentum, with notable increases in both revenue and net income. This growth, coupled with proactive financial initiatives like the credit agreement amendment, positions Victory Capital with enhanced financial flexibility for future endeavors.

• See how Victory Capital Holdings measures up with our analysis of its intrinsic value versus market price.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:VCTR.

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