Here's Why You Should Invest in Virtu Financial Stock Now

Virtu Financial, Inc. VIRT, a leading financial services company, is well-poised to grow on the back of its diversified business and rising interest and dividends income. High volatility favors the company’s Market Making segment. Headquartered in New York, Virtu Financial has a market cap of $5.6 billion.Strong revenue contribution from the Market Making segment due to higher trading income will likely benefit the stock. We expect its capture rate from the unit to improve in the coming days. Courtesy of solid prospects, this Zacks Rank #2 (Buy) stock is worth adding to your portfolio at the moment.VIRT’s Price PerformanceA glimpse at the company’s price trend reveals that the stock has had an impressive run in the past six months. Shares of Virtu Financial have surged 58.9% in the past six months, outperforming the industry, sector and the S&P 500 Index’s 19.9%, 11.5% and 8.1% growth, respectively.VIRT's 6-Month Price PerformanceImage Source: Zacks Investment ResearchVIRT Key DriversThe retail momentum is likely to continue, benefiting the stock. More volatility in the future, its growth initiatives, like expanding into options, cryptocurrency, ETF block trading, IPO investing and others, position it well for long-term growth. The company expects to support upcoming Ethereum ETFs as a market maker, highlighting opportunities in this sector.The expansion of its Execution Services business, driven by advancements in technology and integration of new solutions, poises the company’s top line well for growth in the future, despite fluctuations in market volatility.VIRT exited the third quarter with cash and cash equivalents of $701.4 million while short-term borrowings, net, totaled $128.8 million. Its financial flexibility enables it to make shareholder-friendly moves.In the third quarter of 2024, Virtu Financial bought back shares worth around $48 million. VIRT announced a cash dividend of 24 cents per share. Its dividend yield of 2.7% is higher than the industry average of 1.7%.VIRT Earnings EstimatesThe Zacks Consensus Estimate for VIRT’s 2024 earnings is pegged at $3.15 per share, indicating a year-over-year improvement of 71.2%. VIRT’s 2024 earnings estimates witnessed upward revisions in the past 30 days. Virtu Financial beat on earnings in three of the last four quarters, missed on one occasion, with an average surprise of 8%. This is depicted in the figure below.Virtu Financial, Inc. Price and EPS Surprise Virtu Financial, Inc. price-eps-surprise | Virtu Financial, Inc. QuoteVIRT’s ValuationThe stock is currently trading at a discount. Its forward 12-month price-to-earnings ratio of 11.54 is below the industry average of 15.98.The company's underlying fundamentals are not weak at all, as evidenced by a Value Score of A. These positive factors are likely to help it maintain its share growth trajectory and continue outperforming the industry, making it an excellent candidate to add to your portfolio.Image Source: Zacks Investment ResearchOther Stocks to ConsiderSome other top-ranked stocks in the insurance space are Mercury General Corporation MCY, ProAssurance Corporation PRA and Lincoln National Corporation LNC. While Mercury General and ProAssurance sport a Zacks Rank #1 (Strong Buy) at present, Lincoln National carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Mercury General’s earnings beat estimates in each of the trailing four quarters, the average surprise being 694.28%. The Zacks Consensus Estimate for MCY’s 2024 earnings is pegged at $6.35 per share, which has increased more than 21-fold from the prior-year reported figure. The consensus estimate for revenues implies an improvement of 18.2% from the year-ago actual. The consensus mark for MCY’s 2024 earnings has moved 58.8% north in the past 60 days.The bottom line of ProAssurance outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 61.46%. The Zacks Consensus Estimate for PRA’s 2024 earnings is pegged at 80 cents per share. A loss of 14 cents per share was incurred in the prior year. The consensus mark for PRA’s 2024 earnings has moved 5.3% north in the past 30 days. Lincoln National’s earnings surpassed estimates in each of the last four quarters, the average surprise being 15.9%. The Zacks Consensus Estimate for LNC’s 2024 earnings is pegged at $6.98 per share, which has increased 33.7% from the prior-year reported figure. The consensus mark for revenues indicates a rise of 14.8% from the year-ago actual. The consensus mark for LNC’s 2024 earnings has moved 19.9% north in the past 60 days.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lincoln National Corporation (LNC): Free Stock Analysis Report ProAssurance Corporation (PRA): Free Stock Analysis Report Mercury General Corporation (MCY): Free Stock Analysis Report Virtu Financial, Inc. (VIRT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks