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Are Investors Undervaluing Virtu Financial (VIRT) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Virtu Financial (VIRT - Free Report) is a stock many investors are watching right now. VIRT is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.13, while its industry has an average P/E of 20.61. Over the last 12 months, VIRT's Forward P/E has been as high as 12.61 and as low as 8.89, with a median of 10.63.
We also note that VIRT holds a PEG ratio of 0.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VIRT's industry currently sports an average PEG of 1.16. Within the past year, VIRT's PEG has been as high as 1.53 and as low as 0.39, with a median of 0.51.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VIRT has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.05.
Finally, investors will want to recognize that VIRT has a P/CF ratio of 8.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. VIRT's P/CF compares to its industry's average P/CF of 21.81. VIRT's P/CF has been as high as 9.71 and as low as 6.10, with a median of 7.85, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Virtu Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIRT feels like a great value stock at the moment.
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Are Investors Undervaluing Virtu Financial (VIRT) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Virtu Financial (VIRT - Free Report) is a stock many investors are watching right now. VIRT is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.13, while its industry has an average P/E of 20.61. Over the last 12 months, VIRT's Forward P/E has been as high as 12.61 and as low as 8.89, with a median of 10.63.
We also note that VIRT holds a PEG ratio of 0.60. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. VIRT's industry currently sports an average PEG of 1.16. Within the past year, VIRT's PEG has been as high as 1.53 and as low as 0.39, with a median of 0.51.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. VIRT has a P/S ratio of 1.98. This compares to its industry's average P/S of 2.05.
Finally, investors will want to recognize that VIRT has a P/CF ratio of 8.21. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. VIRT's P/CF compares to its industry's average P/CF of 21.81. VIRT's P/CF has been as high as 9.71 and as low as 6.10, with a median of 7.85, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Virtu Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIRT feels like a great value stock at the moment.