Here’s Why The Strategy is Bullish on Verisk Analytics (VRSK)?

Victory Capital, overseeing the RS Large Cap Value Strategy, released its Q3 2026 investor letter. The letter can be downloaded here. The third quarter of 2026 experienced mixed market performance, with AI stocks declining due to safety concerns and geopolitical conflicts, alongside rising energy prices. The S&P 500 saw a modest gain of 2%, while small-cap stocks retreated over 7%. Large-cap stocks rebounded, particularly in enterprise software, and the healthcare and financial sectors benefited from a steep yield curve. Value-oriented strategies outperformed, with the Russell 3000® Value Index rising 2.3%. Despite multi-decade highs in long-duration bond yields potentially raising borrowing costs and impacting earnings, robust manufacturing activity and stable employment offer mixed signals to equity investors. Against this backdrop, the RS Large Cap Value Strategy outperformed its benchmark Russell 1000 Value Index (the "Index"), driven by stock selection. The Team takes a long-term approach focusing on companies with solid fundamentals and attractive valuations, emphasizing the importance of Return on Invested Capital (ROIC) in value investing and maintaining a disciplined "margin of safety" as the market navigates an improving yet uncertain macroeconomic backdrop. Additionally, reviewing the Strategy's top five holdings provides insight into its best positions for 2026.

In its Q3 2026 investor letter, RS Large Cap Value Strategy highlighted Verisk Analytics, Inc. (NASDAQ:VRSK). Verisk Analytics, Inc. (NASDAQ:VRSK) is a US-based technology company that offers data analytics and technology solutions to the insurance industry. On October 16, 2026, Verisk Analytics, Inc. (NASDAQ:VRSK) closed at $190.90 per share. Over the past month, Verisk Analytics, Inc. (NASDAQ:VRSK) returned 9.96%, but its shares are down 19.61% over the past year. Verisk Analytics, Inc. (NASDAQ:VRSK) has a market capitalization of $24.60 billion, and its stock has traded within a 52-week range of $155.94 to $239.47.

RS Large Cap Value Strategy stated the following regarding Verisk Analytics, Inc. (NASDAQ:VRSK) in its Q3 2026 investor letter

"Verisk Analytics, Inc. (NASDAQ:VRSK) is a leading data analytics and technology provider for the global property and casualty (P&C) insurance industry. It operates as core digital infrastructure, providing predictive models, risk assessment, underwriting solutions, and claims software. Shares were under pressure during the quarter over concerns that a cooling P&C insurance hard market reduced the pricing contribution that historically fueled organic growth. Despite the recent underperformance and broader market, we remain positive on the stock due to VRSK's dominant market share, recurring subscription model, and strong free cash flow generation."

Verisk Analytics, Inc. (NASDAQ:VRSK) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 63 hedge fund portfolios held Verisk Analytics, Inc. (NASDAQ:VRSK) at the end of the second quarter, compared to 50 in the previous quarter. While we acknowledge the potential of Verisk Analytics, Inc. (NASDAQ:VRSK) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we discussed Verisk Analytics, Inc. (NASDAQ:VRSK) and shared Madison Mid Cap Fund's views on the company. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.