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Virtu Financial (VIRT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Virtu Financial (VIRT) closed at $23.37 in the latest trading session, marking a -1.14% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 1.17%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the high-speed trading company had gained 11.35% in the past month. In that same time, the Finance sector gained 10.05%, while the S&P 500 gained 15.69%.

Wall Street will be looking for positivity from VIRT as it approaches its next earnings report date. This is expected to be May 7, 2020. In that report, analysts expect VIRT to post earnings of $1.05 per share. This would mark year-over-year growth of 208.82%. Meanwhile, our latest consensus estimate is calling for revenue of $585.85 million, up 156.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.38 per share and revenue of $1.45 billion, which would represent changes of +147.92% and +48.92%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for VIRT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% higher. VIRT is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, VIRT currently has a Forward P/E ratio of 9.95. This valuation marks a discount compared to its industry's average Forward P/E of 13.3.

The Financial - Miscellaneous Services industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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