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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Virtu Financial (VIRT) is a stock many investors are watching right now. VIRT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.82, while its industry has an average P/E of 14.60. Over the past 52 weeks, VIRT's Forward P/E has been as high as 12.61 and as low as 7.74, with a median of 10.53.
Investors will also notice that VIRT has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VIRT's industry has an average PEG of 0.92 right now. Over the last 12 months, VIRT's PEG has been as high as 1.53 and as low as 0.40, with a median of 0.56.
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
This article originally published on Zacks Investment Research (zacks.com).