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From the vast universe of finance stocks, today we pick Virtu Financial, Inc. (NASDAQ:VIRT) for you. It seems to be an attractive pick now on its top-line strength. Further, the company’s robust fundamentals and solid long-term growth opportunities are tailwinds.
Virtu Financial has been witnessing upward earnings estimate revisions, reflecting analysts’ optimism about its prospects. Over the last 60 days, the Zacks Consensus Estimate for 2020 and 2021 was raised 30.3% and 10.5%, respectively.
Further, the Zacks Rank #1 (Strong Buy) company has gained 7.4% so far this year against the 37.9% decline recorded by the industry.
3 Reasons Why Virtu Financial is a Must Buy
Revenue Growth: Organic growth remains a key strength for Virtu Financial, as depicted in its revenue growth story. Over the last five years (ended 2019), net interest income witnessed a CAGR of 17.7%. The company’s efforts to increase loan balance will likely support top-line growth. Also, its projected sales growth rates of 16.4% for 2020 and 3.1% for 2021 ensure the continuation of the uptrend in revenues.
Earnings per Share Strength: Virtu Financial’s recorded an earnings growth rate of 17.6% over the last three to five years. Furthermore, the company’s projected earnings growth (F1/F0) of 96.5% (compared with the industry average of 7.7%) indicates constant upward momentum in earnings.
Superior Return on Equity (ROE): Virtu Financial’s ROE of 14% compared with the industry average of 9.2% highlights its commendable position over its peers.
Other Stocks to Consider
Some other top-ranked stocks in the same space are PennyMac Financial Services (NYSE:PFSI) and Cohen & Steers (NYSE:CNS) , sporting a Zacks Rank #1, and Moody's Corporation (NYSE:MCO) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Consensus Estimate for 2020 earnings for Moody's has been witnessing upward revisions in the past 60 days. Also, its share price has increased 60% in the past three years.
PennyMac Financial’s earnings estimates for the current year have been witnessing upward revisions over the past 30 days. Further, the company’s shares have gained 2.1% in the past three years.
Cohen & Steers’ consensus estimate for current-year earnings has witnessed upward revisions over the past 60 days. Moreover, in the past three years, its shares have gained 3.9%.
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