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The Charles Schwab Corporation (SCHW) Dips More Than Broader Markets: What You Should Know

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The Charles Schwab Corporation (SCHW - Free Report) closed the most recent trading day at $82.75, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq lost 0.49%.

Coming into today, shares of the company had lost 5.75% in the past month. In that same time, the Finance sector gained 3%, while the S&P 500 gained 5.85%.

Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release, which is expected to be April 18, 2022. On that day, The Charles Schwab Corporation is projected to report earnings of $0.85 per share, which would represent year-over-year growth of 1.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.84 billion, up 2.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $21.18 billion, which would represent changes of +27.69% and +14.36%, respectively, from the prior 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. 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. 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 5.25% higher 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 20.19 right now. Its industry sports an average Forward P/E of 11.44, so we one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.

Investors should also note that SCHW has a PEG ratio of 0.84 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 0.84 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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