VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) – A High-Growth Momentum Stock with Strong Technical Setup

VIRTU FINANCIAL INC-CL A (NASDAQ:VIRT) has been identified as a high-growth momentum stock with a favorable technical setup. The company’s strong earnings momentum, improving profitability, and bullish technical structure make it a candidate worth examining for investors focused on growth and momentum strategies.

Growth and Earnings Momentum

VIRT demonstrates impressive growth metrics, which contribute to its High Growth Momentum Rating of 7:

• EPS Growth (TTM): 121.08% year-over-year, reflecting strong profitability expansion.
• Quarterly EPS Growth: Recent quarters show significant acceleration, with Q2Q growth at 71.05% and the prior quarter posting a 322.22% surge.
• Revenue Growth (TTM): Up 32.65%, indicating sustained top-line expansion.
• Profit Margins: Improved to 10.55% in the latest quarter, up from 7.92% in the prior quarter.
• Analyst Revisions: EPS estimates for the next year have been revised upward by 16.13% over the past three months, signaling optimism.

The company has also consistently beaten earnings and revenue estimates, with an average EPS surprise of 25.72% over the last four quarters.

Technical Strength and Setup

VIRT’s technical profile is equally compelling, with a Technical Rating of 9 and a Setup Rating of 7:

• Long-Term Uptrend: The stock remains in a positive long-term trend, outperforming 98% of its Capital Markets industry peers.
• Consolidation Pattern: Recent price action shows consolidation near the upper end of its 52-week range, with support at $40.18.
• Relative Strength: VIRT ranks in the top 5% of stocks based on 12-month performance, up 85.1%.
• Entry Opportunity: The current pullback toward support presents a potential entry point, with a suggested stop-loss just below $40.17.

For a deeper technical breakdown, review the full technical analysis report.

Why This Combination Matters

High-growth momentum stocks with strong technical setups often present favorable risk/reward opportunities. VIRT’s combination of accelerating earnings, upward estimate revisions, and a bullish chart structure suggests it could be well-positioned for further upside.

Our High Growth Momentum Breakout Setups Screen provides more stocks meeting these criteria, updated daily.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.