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The Charles Schwab Corporation (SCHW) Gains But Lags Market: What You Should Know

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In the latest trading session, The Charles Schwab Corporation (SCHW - Free Report) closed at $90.93, marking a +1.31% move from the previous day. This move lagged the S&P 500's daily gain of 1.43%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 0.32%.

Prior to today's trading, shares of the company had gained 8.72% over the past month. This has outpaced the Finance sector's gain of 2.23% and the S&P 500's gain of 5.65% in that time.

The Charles Schwab Corporation will be looking to display strength as it nears its next earnings release. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.85 per share. This would mark year-over-year growth of 1.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.81 billion, up 2.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.95 per share and revenue of $20.48 billion. These totals would mark changes of +21.54% and +10.57%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. The Charles Schwab Corporation is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that The Charles Schwab Corporation has a Forward P/E ratio of 22.75 right now. For comparison, its industry has an average Forward P/E of 11.55, which means The Charles Schwab Corporation is trading at a premium to the group.

Investors should also note that SCHW has a PEG ratio of 1.05 right now. 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 0.79 as of yesterday's close.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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