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

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The Charles Schwab Corporation (SCHW - Free Report) closed the most recent trading day at $80.03, moving -1.04% from the previous trading session. This change lagged the S&P 500's 0.43% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.2%.

Prior to today's trading, shares of the company had gained 1.86% over the past month. This has lagged the Finance sector's gain of 2.17% and the S&P 500's gain of 3.69% in that time.

Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.86 per share. This would mark year-over-year growth of 2.38%. 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 $3.99 per share and revenue of $20.48 billion. These totals would mark changes of +22.77% and +10.57%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.05% higher. The Charles Schwab Corporation is currently a Zacks Rank #3 (Hold).

Looking at its valuation, The Charles Schwab Corporation is holding a Forward P/E ratio of 20.25. This valuation marks a premium compared to its industry's average Forward P/E of 10.49.

It is also worth noting that SCHW currently has a PEG ratio of 0.84. 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 0.84 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 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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