VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) – A Strong Contender for Growth Investors

VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) has been identified as a potential candidate for growth investors following Louis Navellier’s "Little Book That Makes You Rich" strategy. The stock meets several key criteria outlined in the book, including strong earnings revisions, accelerating growth, and solid profitability metrics. Below, we examine why VIRT stands out.

Key Strengths Based on Navellier’s Criteria

• Positive Earnings Revisions: Analysts have raised EPS estimates for the next quarter by 15.8% over the past three months, signaling confidence in near-term performance.
• Strong Earnings Surprises: VIRT has beaten EPS estimates in each of the last four quarters, with an average surprise of 25.7%.
• Accelerating Growth: Revenue grew 25.4% year-over-year, while quarterly sales increased 21.8%. EPS growth was even more impressive, surging 121% over the past year.
• Expanding Profitability: Operating margins improved by 61.8% year-over-year, indicating better cost efficiency.
• High Return on Equity (ROE): With an ROE of 20.76%, VIRT generates strong returns on shareholder equity, outperforming most peers in the capital markets industry.

Fundamental Overview

VIRT’s financial health has some concerns, particularly regarding liquidity and debt levels, but its growth and profitability metrics are compelling. The stock trades at reasonable valuations, with a P/E ratio of 10.55, below both industry and S&P 500 averages.

For a deeper analysis, review the full fundamental report on VIRT.

Our Little Book Growth screener provides more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.