Virtus (VRTS) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Virtus Investment Partners (VRTS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Virtus is projected at $26.49 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 20.7% [9]. - Over the past three months, the Zacks Consensus Estimate for Virtus has risen by 6.3%, indicating a positive shift in analysts' expectations [9]. Zacks Rating System - The Zacks rating system is based solely on a company's earnings picture, tracking changes in earnings estimates from sell-side analysts [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and has shown a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [8]. Market Implications - The upgrade to Zacks Rank 2 places Virtus in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term due to favorable earnings estimate revisions [11]. - Rising earnings estimates and the corresponding rating upgrade indicate an improvement in Virtus's underlying business, which is expected to positively influence its stock price [6].