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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 $67.49, moving -0.84% from the previous trading session. This change lagged the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Prior to today's trading, shares of the company had gained 6.13% over the past month. This has outpaced the Finance sector's gain of 1.41% and the S&P 500's gain of 0.1% in that time.

Wall Street will be looking for positivity from The Charles Schwab Corporation as it approaches its next earnings report date. The company is expected to report EPS of $0.91, up 30% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.98 billion, up 10.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $20.97 billion, which would represent changes of +19.69% and +13.22%, respectively, from the prior year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. The Charles Schwab Corporation is currently a Zacks Rank #3 (Hold).

In terms of valuation, The Charles Schwab Corporation is currently trading at a Forward P/E ratio of 17.51. For comparison, its industry has an average Forward P/E of 11.6, 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 0.78 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Financial - Investment Bank industry currently had an average PEG ratio of 0.78 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 222, which puts it in the bottom 13% 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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