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

VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) stands out as a potential candidate for investors following Louis Navellier’s growth strategy. The company meets several key criteria outlined in The Little Book That Makes You Rich, demonstrating strong earnings momentum, improving margins, and solid cash flow growth. Below, we examine why VIRT aligns with these principles.

Key Strengths Supporting Growth

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 18.93% over the last three months. VIRT has also delivered four consecutive positive earnings surprises, averaging a 25.72% beat.
• Sales & Earnings Growth: Revenue grew 32.65% year-over-year, while quarterly sales surged 44.57%. EPS growth is even more impressive, with a 121.08% year-over-year increase and 71.05% quarterly growth.
• Expanding Margins: Operating margins improved by 61.79% over the past year, indicating efficient cost management alongside revenue growth.
• Strong Cash Flow: Free cash flow grew 31.01% in the last year, reinforcing financial flexibility.
• High Return on Equity: With an ROE of 20.73%, VIRT generates solid returns on shareholder equity, outperforming most industry peers.

Valuation & Risks

VIRT trades at a P/E ratio of 10.00, below both industry and S&P 500 averages, suggesting reasonable valuation. However, the company’s financial health raises concerns, including high debt levels and weak liquidity ratios. Investors should weigh these risks against its growth potential.

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

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

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.