The Charles Schwab Corporation (SCHW) Gains As Market Dips: What You Should Know
In the latest trading session, The Charles Schwab Corporation (SCHW) closed at $67.64, marking a +1.76% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.12%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.41%.
The company's stock has climbed by 5.61% in the past month, exceeding the Finance sector's gain of 3.94% and the S&P 500's gain of 4.83%.
The investment community will be closely monitoring the performance of The Charles Schwab Corporation in its forthcoming earnings report. On that day, The Charles Schwab Corporation is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 20.43%. Meanwhile, our latest consensus estimate is calling for revenue of $4.71 billion, down 8.02% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.34 per share and a revenue of $19.7 billion, demonstrating changes of +6.71% and +4.58%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 2.45% fall in the Zacks Consensus EPS estimate. Currently, The Charles Schwab Corporation is carrying a Zacks Rank of #4 (Sell).
With respect to valuation, The Charles Schwab Corporation is currently being traded at a Forward P/E ratio of 19.92. This valuation marks a premium compared to its industry's average Forward P/E of 16.89.
We can additionally observe that SCHW currently boasts a PEG ratio of 1.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Financial - Investment Bank industry stood at 1.16 at the close of the market yesterday.
The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250.
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.
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
