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

VIRTU FINANCIAL INC-CLASS A (NYSE:VIRT) was identified by our stock screener as a potential candidate for growth investors following Louis Navellier's "Little Book That Makes You Rich" strategy. The company meets several key criteria outlined in the book, demonstrating strong earnings momentum, revenue growth, and improving profitability. Below, we examine why VIRT stands out.

Key Strengths of VIRT According to Navellier’s Criteria

• Positive Earnings Revisions: Analysts have raised EPS estimates for the next quarter by 16% over the last 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 Revenue Growth: Year-over-year revenue growth stands at 32.7%, while quarterly revenue growth is even stronger at 44.6%.
• Expanding Operating Margins: Operating margins have improved by 61.8% over the past year, reflecting better cost efficiency.
• Robust Cash Flow Growth: Free cash flow has grown by 31% in the last year, providing financial flexibility.
• High Earnings Growth: EPS has surged 121.1% year-over-year, with quarterly EPS growth at 71.1%.
• Strong Return on Equity (ROE): VIRT’s ROE of 20.7% is well above the industry average, indicating efficient use of shareholder capital.

Fundamental Analysis Overview

VIRTU Financial holds a fundamental rating of 4 out of 10, with strengths in valuation and growth but some concerns around financial health. The stock trades at a P/E ratio of 10.7, significantly below the S&P 500 average, suggesting it is undervalued relative to its earnings potential. However, its high debt levels and weak liquidity metrics warrant caution.

For a deeper dive into VIRT’s financials, review the full fundamental analysis report.

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

Disclaimer

This is not investing advice! The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.