It seems to be a wise idea to add Virtus Investment Partners, Inc. (VRTS - Free Report) stock to your portfolio amid the coronavirus crisis, given the strength in fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance-sheet position.
Further, analysts are bullish on the stock. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 7.2% and 30.7% upward for 2020 and 2021, respectively. Also, the company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Virtus Investment have gained 25.7% in the past 12 months compared with the industry's 0.6% increase.
Factors That Make Virtus Investment a Solid Pick
Earnings Growth: Over the past three to five years, Virtus Investment has recorded earnings growth of 24.2% compared with the industry’s average of 8.1%. This momentum is likely to continue in the near term, reflected by the projected earnings growth rate of 4.2% for 2020 (against the projection of a 1.9% decline for the industry) and 35.8% for 2021.
Moreover, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.9%.
Revenue Strength: Virtus Investment’s total revenues have witnessed a CAGR of 15% over the last three years (2017-2019). This uptick primarily resulted from the steady rise in income from total investment management fees. Though the company’s sales are projected to decline 6% in 2020 (against the projection of no growth for the industry), it is expected to be up 30.6% for 2021.
Solid Balance-Sheet Position: As of Jun 30, 2020, Virtus Investment had total debt worth $234.8 million, lower than the cash & cash equivalents balance of $252.1 million. Moreover, the company’s current total debt to total capital of 26% improved sequentially and is below the industry average of 39.9%. This highlights that the company carries a relatively lesser credit risk and chances of its default in debt payments are likely to be lower even if the economic situation worsens.
Robust Capital Deployment: Virtus Investment’s capital-deployment activities are impressive.Since 2018, the company has been increasing its dividend annually, with the latest one announced in August. Considering yesterday’s closing price of $136.05 per share, the company's dividend yield currently stands at 2.41%. Aided by a robust liquidity position, its capital deployments look sustainable and thus, the company is expected to continue enhancing shareholder value.
Stock Looks Undervalued: Virtus Investment currently looks undervalued, with respect to the price/earnings (P/E) (F1) and price/sales (P/S) ratios. It has a P/E (F1) ratio of 8.49, which is below the industry average of 10.33. Also, the bank’s P/S ratio of 1.76 is lower than the industry average of 1.93.
Superior ROE: Virtus Investment’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 20.04% compares favorably with the industry’s 11.91%, reflecting that it is more efficient in using shareholder funds than its peers.
Other Stocks to Consider
Credit Acceptance Corporation’s (CACC - Free Report) Zacks Consensus Estimate for 2020 earnings moved 23.2% upward to $10.48 in the past 60 days. The stock currently holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSphere Investment Group Inc.’s (BSIG - Free Report) Zacks Consensus Estimate for the current-year earnings moved 4.5% north to $1.62 per share in the past two months. The stock currently carries a Zacks Rank of 2.
Eaton Vance Corp.’s (EV - Free Report) Zacks Consensus Estimate for earnings moved up 6.4% to $3.33 in 60 days for 2020. The stock currently carries a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
It seems to be a wise idea to add Virtus Investment Partners, Inc. (VRTS - Free Report) stock to your portfolio amid the coronavirus crisis, given the strength in fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance-sheet position.
Further, analysts are bullish on the stock. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 7.2% and 30.7% upward for 2020 and 2021, respectively. Also, the company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Virtus Investment have gained 25.7% in the past 12 months compared with the industry's 0.6% increase.
Factors That Make Virtus Investment a Solid Pick
Earnings Growth: Over the past three to five years, Virtus Investment has recorded earnings growth of 24.2% compared with the industry’s average of 8.1%. This momentum is likely to continue in the near term, reflected by the projected earnings growth rate of 4.2% for 2020 (against the projection of a 1.9% decline for the industry) and 35.8% for 2021.
Moreover, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.9%.
Revenue Strength: Virtus Investment’s total revenues have witnessed a CAGR of 15% over the last three years (2017-2019). This uptick primarily resulted from the steady rise in income from total investment management fees. Though the company’s sales are projected to decline 6% in 2020 (against the projection of no growth for the industry), it is expected to be up 30.6% for 2021.
Solid Balance-Sheet Position: As of Jun 30, 2020, Virtus Investment had total debt worth $234.8 million, lower than the cash & cash equivalents balance of $252.1 million. Moreover, the company’s current total debt to total capital of 26% improved sequentially and is below the industry average of 39.9%. This highlights that the company carries a relatively lesser credit risk and chances of its default in debt payments are likely to be lower even if the economic situation worsens.
Robust Capital Deployment: Virtus Investment’s capital-deployment activities are impressive.Since 2018, the company has been increasing its dividend annually, with the latest one announced in August. Considering yesterday’s closing price of $136.05 per share, the company's dividend yield currently stands at 2.41%. Aided by a robust liquidity position, its capital deployments look sustainable and thus, the company is expected to continue enhancing shareholder value.
Stock Looks Undervalued: Virtus Investment currently looks undervalued, with respect to the price/earnings (P/E) (F1) and price/sales (P/S) ratios. It has a P/E (F1) ratio of 8.49, which is below the industry average of 10.33. Also, the bank’s P/S ratio of 1.76 is lower than the industry average of 1.93.
Superior ROE: Virtus Investment’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 20.04% compares favorably with the industry’s 11.91%, reflecting that it is more efficient in using shareholder funds than its peers.
Other Stocks to Consider
Credit Acceptance Corporation’s (CACC - Free Report) Zacks Consensus Estimate for 2020 earnings moved 23.2% upward to $10.48 in the past 60 days. The stock currently holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BrightSphere Investment Group Inc.’s (BSIG - Free Report) Zacks Consensus Estimate for the current-year earnings moved 4.5% north to $1.62 per share in the past two months. The stock currently carries a Zacks Rank of 2.
Eaton Vance Corp.’s (EV - Free Report) Zacks Consensus Estimate for earnings moved up 6.4% to $3.33 in 60 days for 2020. The stock currently carries a Zacks Rank of 2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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