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Virtu Financial (VIRT) Outpaces Stock Market Gains: What You Should Know

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Virtu Financial (VIRT - Free Report) closed at $27.99 in the latest trading session, marking a +1.3% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.52%.

Coming into today, shares of the high-speed trading company had lost 10.55% in the past month. In that same time, the Finance sector lost 1.67%, while the S&P 500 gained 2.25%.

VIRT will be looking to display strength as it nears its next earnings release. On that day, VIRT is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 20.93%. Our most recent consensus estimate is calling for quarterly revenue of $373.86 million, down 44.09% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.20 per share and revenue of $1.79 billion. These totals would mark changes of -27.08% and -21.2%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for VIRT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. VIRT is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, VIRT is holding a Forward P/E ratio of 6.57. This valuation marks a discount compared to its industry's average Forward P/E of 12.54.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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