Virtus Investment Partners Inc. Stock Upgraded (VRTS)

NEW YORK ( TheStreet) -- Virtus Investment Partners (Nasdaq: VRTS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 32.3%. Since the same quarter one year prior, revenues rose by 37.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • VRTS's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, VIRTUS INVESTMENT PTNRS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 3533.33% and other important driving factors, this stock has surged by 54.29% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • VIRTUS INVESTMENT PTNRS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, VIRTUS INVESTMENT PTNRS INC increased its bottom line by earning $16.52 versus $0.76 in the prior year.

Virtus Investment Partners, Inc. provides investment management products and services to individuals and institutions in the United States. The company has a P/E ratio of 102.2, below the average financial services industry P/E ratio of 122.9 and above the S&P 500 P/E ratio of 17.7. Virtus Investment has a market cap of $493.1 million and is part of the financial sector and financial services industry. Shares are up 8.3% year to date as of the close of trading on Friday.

You can view the full Virtus Investment Ratings Report or get investment ideas from our investment research center.
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