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The Charles Schwab Corporation (SCHW) Dips More Than Broader Markets: What You Should Know

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The Charles Schwab Corporation (SCHW) closed the most recent trading day at $61.55, moving -1.12% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the company had gained 1.87% in the past month. In that same time, the Finance sector lost 3.17%, while the S&P 500 lost 1.89%.

Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release, which is expected to be July 18, 2022. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.92 per share. This would mark year-over-year growth of 31.43%. Meanwhile, our latest consensus estimate is calling for revenue of $5.03 billion, up 11.01% from the prior-year quarter.

SCHW's full-year Zacks Consensus Estimates are calling for earnings of $3.86 per share and revenue of $20.63 billion. These results would represent year-over-year changes of +18.77% and +11.41%, respectively.

It is also important to note the recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. The Charles Schwab Corporation currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that The Charles Schwab Corporation has a Forward P/E ratio of 16.15 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.83.

We can also see that SCHW currently has a PEG ratio of 0.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.72 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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