Is Virtu Financial (VIRT) Stock Undervalued 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Virtu Financial (VIRT) is a stock many investors are watching right now. VIRT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.92 right now. For comparison, its industry sports an average P/E of 14.17. Over the last 12 months, VIRT's Forward P/E has been as high as 11.49 and as low as 6.99, with a median of 8.88.

We also note that VIRT holds a PEG ratio of 0.42. 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 PEG compares to its industry's average PEG of 0.95. Within the past year, VIRT's PEG has been as high as 5.04 and as low as 0.36, with a median of 0.43.

Finally, investors should note that VIRT has a P/CF ratio of 8.23. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. VIRT's P/CF compares to its industry's average P/CF of 13.91. VIRT's P/CF has been as high as 8.24 and as low as 5.18, with a median of 6.39, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Virtu Financial is likely undervalued currently. And when considering the strength of its earnings outlook, VIRT sticks out at as one of the market's strongest value stocks.

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