The Charles Schwab Corporation (SCHW) Gains As Market Dips: What You Should Know
The Charles Schwab Corporation (SCHW) ended the recent trading session at $68.10, demonstrating a +0.68% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.02%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, lost 1.65%.
The company's stock has climbed by 8.45% in the past month, exceeding the Finance sector's gain of 3.9% and the S&P 500's gain of 3.64%.
The upcoming earnings release of The Charles Schwab Corporation will be of great interest to investors. The company is expected to report EPS of $0.74, down 20.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.71 billion, down 8.02% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $19.7 billion. These totals would mark changes of +6.71% and +4.58%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for The Charles Schwab Corporation. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.45% lower. As of now, The Charles Schwab Corporation holds a Zacks Rank of #3 (Hold).
Digging into valuation, The Charles Schwab Corporation currently has a Forward P/E ratio of 20.27. This denotes a premium relative to the industry's average Forward P/E of 17.08.
We can additionally observe that SCHW currently boasts a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Financial - Investment Bank industry had an average PEG ratio of 1.17.
The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 38, positioning it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
