The Charles Schwab Corporation (SCHW) Sees a More Significant Dip Than Broader Market: Some Facts to Know
The Charles Schwab Corporation (SCHW) closed at $66.95 in the latest trading session, marking a -0.33% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow experienced a rise of 0.12%, and the technology-dominated Nasdaq saw a decrease of 0.41%.
Shares of the company have appreciated by 6% over the course of the past month, outperforming the Finance sector's gain of 4.89% and the S&P 500's gain of 2.7%.
Analysts and investors alike will be keeping a close eye on the performance of The Charles Schwab Corporation in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.74, indicating a 20.43% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.71 billion, indicating a 7.99% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $3.34 per share and a revenue of $19.71 billion, demonstrating changes of +6.71% and +4.62%, respectively, from the preceding year.
Any recent changes to analyst estimates for The Charles Schwab Corporation should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.45% downward. The Charles Schwab Corporation is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, The Charles Schwab Corporation is presently trading at a Forward P/E ratio of 20.12. Its industry sports an average Forward P/E of 17.19, so one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.
One should further note that SCHW currently holds a PEG ratio of 1.31. 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. The Financial - Investment Bank industry had an average PEG ratio of 1.15 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
