The Charles Schwab Corporation (SCHW) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, The Charles Schwab Corporation (SCHW) closed at $52.38, marking a -0.17% move from the previous day. This change lagged the S&P 500's 1.44% gain on the day. Meanwhile, the Dow gained 1.26%, and the Nasdaq, a tech-heavy index, added 5.21%.
Heading into today, shares of the company had lost 31.04% over the past month, lagging the Finance sector's loss of 6.37% and the S&P 500's gain of 2.28% in that time.
Wall Street will be looking for positivity from The Charles Schwab Corporation as it approaches its next earnings report date. This is expected to be April 17, 2023. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.93 per share. This would mark year-over-year growth of 20.78%. Meanwhile, our latest consensus estimate is calling for revenue of $5.26 billion, up 12.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.11 per share and revenue of $21.08 billion, which would represent changes of +5.38% and +1.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 6.95% lower within the past month. The Charles Schwab Corporation currently has a Zacks Rank of #4 (Sell).
Investors should also note The Charles Schwab Corporation's current valuation metrics, including its Forward P/E ratio of 12.77. Its industry sports an average Forward P/E of 12.45, so we one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.
Also, we should mention that SCHW has a PEG ratio of 1.26. 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. The Financial - Investment Bank industry currently had an average PEG ratio of 0.98 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% of all 250+ industries.
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.
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