Are Investors Undervaluing Virtu Financial (VIRT) Right Now?

Zacks
18 Dec 2024

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Virtu Financial (VIRT). VIRT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.74 right now. For comparison, its industry sports an average P/E of 17.01. Over the last 12 months, VIRT's Forward P/E has been as high as 12.37 and as low as 7.05, with a median of 9.55.

Investors will also notice that VIRT has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VIRT's industry currently sports an average PEG of 0.82. Over the past 52 weeks, VIRT's PEG has been as high as 5.04 and as low as 0.36, with a median of 0.44.

Finally, our model also underscores that VIRT has a P/CF ratio of 9.36. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. VIRT's P/CF compares to its industry's average P/CF of 18.73. Over the past year, VIRT's P/CF has been as high as 9.71 and as low as 5.18, with a median of 7.16.

These are just a handful of the figures considered in Virtu Financial's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that VIRT is an impressive value stock right now.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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