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The Charles Schwab Corporation (SCHW) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, The Charles Schwab Corporation (SCHW - Free Report) closed at $83.54, marking a -0.91% move from the previous day. This move lagged the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the company had gained 4.46% in the past month. In that same time, the Finance sector gained 1.56%, while the S&P 500 gained 3.75%.

The Charles Schwab Corporation will be looking to display strength as it nears its next earnings release. On that day, The Charles Schwab Corporation is projected to report earnings of $0.88 per share, which would represent year-over-year growth of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $4.81 billion, up 2.02% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.95 per share and revenue of $20.48 billion, which would represent changes of +21.54% and +10.57%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for The Charles Schwab Corporation. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. 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 21.37 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.06.

Investors should also note that SCHW has a PEG ratio of 0.98 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. 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 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SCHW in the coming trading sessions, be sure to utilize Zacks.com.


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