Reasons to Add VirTra (VTSI) Stock to Your Portfolio Now
VirTra VTSI provides training simulators for law enforcement and broader defense industries. Its rising earnings estimates and strong liquidity offer a great investment opportunity in the aerospace sector.
Let’s focus on the reasons that make this Zacks Rank #1 (Strong Buy) stock an investment opportunity at the moment.
Growth Projections, Earnings Growth & Surprise History
The Zacks Consensus Estimate for VTSI’s 2024 earnings per share (EPS) has increased 32.08% to 70 cents in the past 60 days. The Zacks Consensus Estimate for VTSI’s total revenues for 2024 stands at $41.76 million, indicating year-over-year growth of 10.27%.
The company’s (three to five years) earnings growth is pegged at 30%. It delivered an average earnings surprise of 296.46% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, VirTra’s ROE is 18.94% compared to its sector average of 10.49%. This indicates that the company has been utilizing its funds more constructively than its peers in the sector.
Stable Backlog and Wide Market
VTSI has a stable backlog of $16 million as of Sep 30, 2023, which is a testament to the strength of its sales.
VirTra’s operations are spread globally, and its products are deployed in hundreds of agencies in 40 countries.
Liquidity Ratio
VTSI’s current ratio at the end of the third quarter of 2023 was 2.69. The ratio being greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.
Price Performance
In the past six months, VTSI shares have risen 38.5% compared with its industry’s average return of 23.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks related to the same sector are General Dynamics GD, Airbus EADSY and Safran SAFRY, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Dynamics’s long-term earnings growth rate is pegged at 8.96%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at 14.92, implying a year-over-year increase of 18.74%.
Airbus’ long-term earnings growth rate is pegged at 12.37%. The Zacks Consensus Estimate for the company’s 2024 EPS stands at $1.83, calling for a year-over-year increase of 17.85%
Safran’s long-term earnings growth rate is pegged at 34.34%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.81, indicating a year-over-year rise of 154.93%
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General Dynamics Corporation (GD) : Free Stock Analysis Report
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Airbus Group (EADSY) : Free Stock Analysis Report
VirTra, Inc. (VTSI) : Free Stock Analysis Report
