Back to top

Image: Bigstock

Should Value Investors Buy Virtu Financial (VIRT) Stock?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Virtu Financial (VIRT - Free Report) is a stock many investors are watching right now. VIRT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.77, while its industry has an average P/E of 15.28. Over the past year, VIRT's Forward P/E has been as high as 11.49 and as low as 7.05, with a median of 9.09.

Investors should also note that VIRT holds a PEG ratio of 0.43. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIRT's PEG compares to its industry's average PEG of 0.72. VIRT's PEG has been as high as 5.04 and as low as 0.36, with a median of 0.43, all within the past year.

Finally, investors will want to recognize that VIRT has a P/CF ratio of 8.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.37. VIRT's P/CF has been as high as 8.49 and as low as 5.18, with a median of 6.57, all within the past year.

These are just a handful of the figures considered in Virtu Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VIRT is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Virtu Financial, Inc. (VIRT) - free report >>

Published in