The Charles Schwab Corporation (SCHW) Gains As Market Dips: What You Should Know

·3 min read

The Charles Schwab Corporation (SCHW) closed the most recent trading day at $77.92, moving +0.05% from the previous trading session. This change outpaced the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq gained 0.84%.

Heading into today, shares of the company had gained 3.15% over the past month, outpacing the Finance sector's loss of 2.03% and the S&P 500's loss of 2% in that time.

The Charles Schwab Corporation will be looking to display strength as it nears its next earnings release. In that report, analysts expect The Charles Schwab Corporation to post earnings of $1.02 per share. This would mark year-over-year growth of 32.47%. Meanwhile, our latest consensus estimate is calling for revenue of $5.45 billion, up 16.65% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.41 per share and revenue of $22.56 billion, which would represent changes of +13.08% and +8.65%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.45% lower within the past month. The Charles Schwab Corporation is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, The Charles Schwab Corporation currently has a Forward P/E ratio of 17.64. Its industry sports an average Forward P/E of 12.66, so we one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.

It is also worth noting that SCHW currently has a PEG ratio of 1.19. 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. SCHW's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.

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