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Surging Earnings Estimates Signal Upside for Virtu Financial (VIRT) Stock
ZACKS· 2025-07-18 17:22
Core Viewpoint - Investors are encouraged to consider Virtu Financial (VIRT) due to solid improvements in earnings estimates and positive short-term price momentum [1][10]. Earnings Estimates - Analysts show growing optimism for Virtu Financial's earnings prospects, reflected in upward revisions of earnings estimates, which correlate strongly with stock price movements [2]. - For the current quarter, the expected earnings per share (EPS) is $1.26, marking a 51.8% increase from the previous year, with a 12.68% rise in consensus estimates over the last 30 days [6]. - For the full year, the expected EPS is $4.31, representing a year-over-year increase of 21.4%, with a 14.6% boost in consensus estimates during the same period [7][8]. Zacks Rank - Virtu Financial holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on upward revisions of earnings estimates, which historically leads to outperformance [3][9]. - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, suggesting a favorable investment outlook for Virtu Financial [9]. Stock Performance - Virtu Financial shares have increased by 5.7% over the past four weeks, indicating investor confidence in the company's earnings growth prospects [10].
All You Need to Know About Virtu Financial (VIRT) Rating Upgrade to Buy
ZACKS· 2025-06-10 17:01
Core Viewpoint - Virtu Financial (VIRT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for Virtu Financial suggests an improvement in its underlying business, which should encourage investors to drive the stock price higher [5]. - Analysts have raised their earnings estimates for Virtu Financial, with the Zacks Consensus Estimate increasing by 8.4% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Virtu Financial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].