The Charles Schwab Corporation (SCHW) Gains As Market Dips: What You Should Know
The Charles Schwab Corporation (SCHW) closed the most recent trading day at $62.44, moving +0.1% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.14%.
Prior to today's trading, shares of the company had lost 2.44% over the past month. This has was narrower than the Finance sector's loss of 4.35% and the S&P 500's loss of 3.32% in that time.
Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release. The company is expected to report EPS of $0.92, up 31.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.06 billion, up 11.74% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.88 per share and revenue of $20.95 billion. These totals would mark changes of +19.38% and +13.1%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for The Charles Schwab Corporation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. The Charles Schwab Corporation is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, The Charles Schwab Corporation currently has a Forward P/E ratio of 16.09. This represents a premium compared to its industry's average Forward P/E of 10.2.
Meanwhile, SCHW's PEG ratio is currently 0.71. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.71 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 27% 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.
To follow SCHW in the coming trading sessions, be sure to utilize Zacks.com.
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