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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Virtu Financial (VIRT). VIRT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 10.91. This compares to its industry's average Forward P/E of 15.88. Over the past year, VIRT's Forward P/E has been as high as 11.49 and as low as 7.05, with a median of 9.31.
Investors will also notice that VIRT has a PEG ratio of 0.46. 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 PEG compares to its industry's average PEG of 0.77. Over the past 52 weeks, 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 8.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.62. VIRT's P/CF has been as high as 8.55 and as low as 5.18, with a median of 6.73, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Virtu Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, VIRT feels like a great value stock at the moment.
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Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
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