Virtu Financial Inc (NASDAQ:VIRT) – A Growth Stock Worth Watching

Virtu Financial Inc (NASDAQ:VIRT) is a trading and liquidity services provider with a strong presence in global financial markets. The company operates in market making and execution services, serving institutional clients across equities, fixed income, currencies, and commodities.

Why Virtu Financial Fits the Little Book Growth Strategy

Louis Navellier’s The Little Book That Makes You Rich outlines eight key rules for identifying high-growth stocks. Virtu Financial (NASDAQ:VIRT) meets several of these criteria, making it a potential candidate for growth investors.

Key Growth Metrics

1. Positive Earnings Revisions – Analysts have raised EPS estimates for the next quarter by 41.17% over the past three months, signaling confidence in future performance.
2. Positive Earnings Surprises – The company has beaten EPS estimates in all of the last four quarters, with an average surprise of 25.72%.
3. Increasing Sales Growth – Revenue has grown 25.45% year-over-year, with quarterly sales up 21.82%.
4. Expanding Operating Margin – Operating margins improved by 61.82% over the past year, indicating better profitability.
5. Strong Cash Flow – Free cash flow surged 31.04% in the last year, reflecting financial strength.
6. Earnings Growth – EPS grew 121.08% year-over-year, with quarterly EPS up 71.05%.
7. Positive Earnings Momentum – The latest quarterly EPS growth (71.05%) far exceeds the same quarter a year ago (2.70%).
8. High Return on Equity – ROE stands at 20.76%, well above the 10% threshold Navellier recommends.

Fundamental Analysis Summary

Virtu Financial (NASDAQ:VIRT) has a mixed but promising financial profile. While profitability metrics like ROE and gross margin are strong, concerns exist around debt levels and liquidity. The stock trades at a reasonable valuation, with a P/E ratio of 9.57, below both industry and S&P 500 averages.

For a deeper dive into the fundamentals, see the full analysis here.

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