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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 $71.94, moving +0.07% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.57%, and the Nasdaq, a tech-heavy index, lost 0.13%.

Heading into today, shares of the company had gained 4.11% over the past month, outpacing the Finance sector's gain of 3.19% and the S&P 500's gain of 3.65% in that time.

Wall Street will be looking for positivity from The Charles Schwab Corporation as it approaches its next earnings report date. The company is expected to report EPS of $1.05, up 25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.36 billion, up 17.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.92 per share and revenue of $20.77 billion. These totals would mark changes of +20.62% and +12.16%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 remained stagnant within the past month. The Charles Schwab Corporation currently has a Zacks Rank of #3 (Hold).

In terms of valuation, The Charles Schwab Corporation is currently trading at a Forward P/E ratio of 18.36. Its industry sports an average Forward P/E of 13.68, so we one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.

Meanwhile, SCHW's PEG ratio is currently 0.86. 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 0.86 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 204, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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