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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Virtu Financial (VIRT). VIRT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.59, while its industry has an average P/E of 15.29. Over the last 12 months, VIRT's Forward P/E has been as high as 12.61 and as low as 8.22, with a median of 10.26.
Finally, investors should note that VIRT has a P/CF ratio of 7.10. 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. VIRT's current P/CF looks attractive when compared to its industry's average P/CF of 17.85. Within the past 12 months, VIRT's P/CF has been as high as 9.71 and as low as 5.51, with a median of 7.43.
These are only a few of the key metrics included in Virtu Financial's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, VIRT looks like an impressive 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).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
