Are Investors Undervaluing Virtu Financial (VIRT) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 an A grade for Value. The stock holds a P/E ratio of 10.62, while its industry has an average P/E of 15.48. Over the past 52 weeks, VIRT's Forward P/E has been as high as 11.49 and as low as 6.99, with a median of 8.96.

We also note that VIRT holds a PEG ratio of 0.41. 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 0.70. Within the past year, VIRT's PEG has been as high as 5.04 and as low as 0.36, with a median of 0.42.

Finally, we should also recognize that VIRT has a P/CF ratio of 8.01. 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 16.18. Within the past 12 months, VIRT's P/CF has been as high as 8.24 and as low as 5.18, with a median of 6.48.

These are only a few of the key metrics included in Virtu Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VIRT looks like an impressive value stock at the moment.

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