VIRTU FINANCIAL INC-CLASS A (NASDAQ:VIRT) - A stock meeting Louis Navellier's growth criteria

VIRTU FINANCIAL INC-CLASS A (NASDAQ: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 demonstrates strong earnings momentum, accelerating revenue growth, and improving profitability—key traits Navellier looks for in high-growth stocks.

Why VIRT Fits Navellier’s Growth Criteria

VIRT meets several of Navellier’s eight rules for superior growth stocks:

1. Positive Earnings Revisions: Analysts have raised EPS estimates for the next quarter by 34.97% over the last three months.
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 grew 25.45% year-over-year, with quarterly sales up 21.82%.
4. Expanding Operating Margins: Operating margins improved by 61.82% over the past year.
5. Strong Cash Flow: Free cash flow surged 31.04% in the last 12 months.
6. Earnings Growth: EPS grew 121.08% year-over-year and 71.05% quarter-over-quarter.
7. Positive Earnings Momentum: The latest quarterly EPS growth significantly outpaced the same quarter a year ago.
8. High Return on Equity: ROE stands at 20.76%, well above the 10% threshold Navellier recommends.

Fundamental Overview

VIRT’s financial health shows mixed signals. While profitability metrics like ROE and earnings growth are strong, concerns exist around debt levels and liquidity. The company has a high debt-to-equity ratio (9.53) and a weak current ratio (0.22), indicating potential short-term financial strain. However, valuation remains reasonable, with a P/E ratio of 10.11, below both industry and S&P 500 averages.

For a deeper dive, review the full fundamental analysis report.

Our Little Book Growth Stock Screener lists more stocks matching these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.