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 "The Little Book That Makes You Rich" strategy. The company meets several key criteria outlined in the book, including strong earnings growth, improving margins, and solid cash flow generation. Below, we examine why VIRT stands out based on these metrics.

Key Strengths of VIRT According to Navellier’s Criteria

• Earnings Growth & Momentum: VIRT reported a 121.08% year-over-year increase in earnings per share (EPS), with quarterly EPS growth at 71.05%. This acceleration suggests strong operational performance.
• Positive Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 15.81% over the last three months. The company has also beaten EPS estimates in all of the last four quarters, with an average surprise of 25.72%.
• Revenue Growth: Sales increased by 25.45% year-over-year, with quarterly revenue up 21.82%, indicating sustained demand for its trading and liquidity services.
• Expanding Margins: Operating margins improved by 61.82% over the past year, reflecting better cost management and pricing power.
• Strong Cash Flow: Free cash flow grew by 31.04%, providing flexibility for reinvestment or shareholder returns.
• High Return on Equity (ROE): With an ROE of 20.76%, VIRT outperforms 89% of its industry peers, demonstrating efficient use of shareholder capital.

Valuation & Risks

VIRT trades at a P/E ratio of 10.36, below both the industry and S&P 500 averages, suggesting it may be undervalued. However, the company has a high debt-to-equity ratio (9.53) and weak liquidity metrics, which could pose risks if market conditions worsen.

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

Our Little Book screener lists more stocks matching these criteria and is updated regularly.

Disclaimer

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