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Schwab Touches 52-Week High

Zacks Equity Research

Shares of The Charles Schwab Corporation (SCHW) achieved a new 52-week high, touching $26.08 in the first half of the trading session on Dec 31, 2013. The closing price of this brokerage firm marks a strong return of 74.5% for 2013. The average trading volume for the session was 4.7 million shares.

We expect the performance of this Zacks Rank #2 (Buy) stock to remain stable due to lack of significant estimate revisions over the last 60 days. However, the year-over-year earnings growth expectation is 18.6% for 2013.

Growth Drivers

Schwab’s impressive third-quarter 2013 results and continued year-over-year rise in Daily Average Trades (DATs) have been the primary growth drivers.

On Dec 13, 2013, Schwab reported its monthly market activity for Nov 2013. The company reported DATs of 467,300, up 8% from the year-ago month level. Further, total client assets were $2.22 trillion, up 15% from Nov 2012.

On Oct 15, 2013, Schwab reported third-quarter results. Earnings in the reported quarter surpassed the Zacks Consensus Estimate. Results were mainly driven by top-line growth and a benefit from provision, partially offset by higher expenses. Moreover, improvement in client assets and higher new brokerage accounts were the tailwinds.

Estimate Revisions

Over the last 60 days, the Zacks Consensus Estimate remained stable at 76 cents per share. For 2014, the Zacks Consensus Estimate increased 1.1% to 91 cents per share over the same time frame.

Some other stocks worth considering include E*TRADE Financial Corporation (ETFC), Stifel Financial Corp. (SF) and Evercore Partners Inc. (EVR). All these have a Zacks Rank #2 (Buy).

Read the Full Research Report on ETFC
Read the Full Research Report on SCHW
Read the Full Research Report on SF
Read the Full Research Report on EVR

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