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Shares of The Charles Schwab Corporation (SCHW - Analyst Report) crafted a new 52-week high, touching $20.04 in the first half of the trading session on May 29, 2013. The closing price of this brokerage firm represents a solid year-to-date return of 33.0%. The average trading volume over the last 3 months was 9.5 million shares.

We expect the performance of this Zacks Rank #3 (Hold) stock to remain stable due to lack of significant estimate revision. However, the year-over-year earnings growth expectation is 15.16% for 2013.

Growth Drivers

Schwab’s impressive first-quarter 2013 results and its continued capital deployment activities have been the primary growth drivers.

On May 14, 2013, Schwab reported its monthly market activity for Apr 2013. The company reported Daily Average Trades (DATs) of 470,000, up 2% from 458,900 in the year-ago month.

On Apr 15, 2013, Schwab reported first-quarter 2013 earnings of 15 cents per share, in line with the year-ago quarter number. Results were mainly driven by top-line growth, partially offset by higher operating expenses and a rise in provision for loan losses. Moreover, improvement in client assets and higher new brokerage accounts were the tailwinds for the quarter.

Alongside, Schwab has an average earnings beat of 2.43% over the last 4 quarters.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate remained stable at $0.74 per share. However, for 2014, the Zacks Consensus Estimate declined 2.3% to $0.85 per share over the same time frame.

Some better performing stocks include Ladenburg Thalmann Financial Services Inc. (LTS - Snapshot Report) and LPL Financial Holdings Inc. (LPLA - Snapshot Report) with a Zacks Rank #1 (Strong Buy) and GAIN Capital Holdings, Inc. (GCAP - Snapshot Report) with a Zacks Rank #2 (Buy).

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