Group 1 - The article compares two companies, Virtu Financial (VIRT) and Blackstone Inc. (BX), to determine which is the better undervalued stock option for investors [1] - Virtu Financial has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Blackstone Inc., which has a Zacks Rank of 3 (Hold) [3][7] - Value investors analyze various traditional metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - Virtu Financial has a forward P/E ratio of 10.69, significantly lower than Blackstone Inc.'s forward P/E of 34.90, suggesting VIRT is more attractively priced [5] - The PEG ratio for Virtu Financial is 0.41, while Blackstone Inc. has a PEG ratio of 1.36, indicating VIRT's expected earnings growth is more favorable relative to its price [5] - Virtu Financial's P/B ratio is 3.45 compared to Blackstone Inc.'s P/B of 6.46, further supporting the argument that VIRT is undervalued [6] Group 3 - Based on the valuation metrics and improving earnings outlook, Virtu Financial is positioned as the superior value option at this time [7]

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 ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. It also includes access to the Zacks Style Scores ...

Core Insights - Zacks offers various investment opportunities and tools aimed at long-term success in the stock market [1] - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% annually, outperforming the S&P 500's return of 9.38% [5] - Cumulatively, the Focus List has returned 2,519.23% from February 1, 1996, to March 31, 2021, compared to the S&P's 854.95% [5] Methodology - The Focus List relies on earnings estimate revisions from brokerage analysts, which assess various factors affecting future earnings [6] - Stocks are selected based on upward earnings estimate revisions, indicating potential future price momentum [7][10] - The Zacks Rank, a proprietary stock-rating model, classifies stocks into five groups based on four main factors: Agreement, Magnitude, Upside, and Surprise [9] Spotlight on Virtu Financial - Virtu Financial, a market-leading financial services firm, was added to the Focus List on July 31, 2023, at $18.90 per share [11][12] - Since its addition, shares have increased by 64.71% to $31.13, with a Zacks Rank of 3 (Hold) [12] - Six analysts have revised their earnings estimates upwards for fiscal 2024, with the consensus estimate increasing by $0.48 to $2.96 [12] - Virtu's earnings are projected to grow by 60.9% for the current fiscal year [12]

Paul Zimmerman/Getty Images Entertainment Since my last Virtu Financial (NASDAQ:VIRT) article, the stock is up 65% while the S&P 500 returned 14%. It is one of my worst-performing articles in terms of readers on Seeking Alpha, but one of my best-performing stocks since publication. There is a lot of alpha in identifying high-quality stocks that are undervalued, especially if no one else is looking. The thesis remains largely the same, a sophisticated hedge focused on Virtu's ability to take advantage of vol ...

Core Viewpoint - Virtu Financial, Inc. is positioned for growth due to its diversified business model and increasing income from interest and dividends, with a market cap of $4.8 billion [1]. Group 1: Financial Performance - The Market Making segment is expected to contribute significantly to revenue, with anticipated improvements in capture rates and a decline in costs [2]. - Virtu Financial's stock has increased by 67.4% over the past year, outperforming the industry, sector, and S&P 500 Index, which grew by 21.8%, 29.3%, and 25.3% respectively [3]. - The company reported a decline in net brokerage, exchange, clearance fees, and payments for order flow, with decreases of 16.9% in 2022 and 17.9% in 2023, which is expected to enhance margins [5]. - In Q2 2024, Virtu Financial repurchased shares worth approximately $31 million and announced a cash dividend of 24 cents per share, resulting in a dividend yield of 3.1%, higher than the industry average of 2% [6]. Group 2: Growth Drivers - Retail momentum is expected to continue, supported by growth initiatives such as expansion into options, cryptocurrency, ETF block trading, and IPO investing [3]. - The Execution Services business is set for growth due to technological advancements and the integration of new solutions, despite market volatility [4]. - The Zacks Consensus Estimate for 2024 earnings is $2.86 per share, reflecting a year-over-year improvement of 55.4%, with a stable estimate for 2025 suggesting further growth of 1.9% [7]. Group 3: Valuation - The stock is currently trading at a forward 12-month price-to-earnings ratio of 10.74X, below the industry average of 13.81X, indicating it is undervalued [8]. - The company's fundamentals are strong, as evidenced by a Value Score of A, which supports its potential for continued share growth and industry outperformance [8].

Core Insights - Zacks Premium offers various tools for investors to identify stocks to buy, sell, and track hot industries [1] - The Focus List is a long-term portfolio of 50 stocks expected to outperform the market over the next 12 months [3][4] Performance Metrics - In 2020, the Focus List gained 13.85% annually, outperforming the S&P 500's 9.38% return [5] - Cumulatively, from February 1, 1996 to March 31, 2021, the Focus List returned 2,519.23%, while the S&P returned 854.95% [5] Selection Methodology - Stocks for the Focus List are selected based on earnings estimate revisions, which reflect growth and profitability expectations [6] - The Zacks Rank, a proprietary stock-rating model, utilizes changes in quarterly earnings expectations to aid in stock selection [8][9] Earnings Estimate Insights - Upward revisions in earnings estimates often lead to further positive changes, indicating potential price momentum [7][10] - The Focus List includes stocks ranked 1 (Strong Buy) or 2 (Buy), indicating a bullish consensus among analysts [9] Spotlight on Virtu Financial - Virtu Financial, a market-leading financial services firm, was added to the Focus List on July 31, 2023, at $18.90 per share, and has since increased by 62.22% to $30.66 [10][11] - For fiscal 2024, Virtu's earnings estimate has increased by $0.29 to $2.79, with an expected growth of 51.6% for the current fiscal year [11]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium includes access to the Zacks Style ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style S ...

H Vertigo3d I often look for low-beta stocks to add to my portfolio to be more resilient to market volatility. But it is not easy to find stocks that are not only low-beta but also highquality growth names, akin to having the cake and eating it too. Virtu Financial (NASDAQ:VIRT) is among the rare breed of names that can fit this profile. I own shares in the company, and I can distill the reasons for this below: Volatile markets benefit the company, which makes it anti-fragile. Low beta name (2Y Beta of 0.5) ...