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

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The Charles Schwab Corporation (SCHW - Free Report) closed the most recent trading day at $61.11, moving +1.44% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.5%.

Heading into today, shares of the company had lost 5.93% over the past month, lagging the Finance sector's loss of 5.85% and outpacing the S&P 500's loss of 6.69% in that time.

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 $0.91 per share, which would represent year-over-year growth of 30%. Our most recent consensus estimate is calling for quarterly revenue of $4.98 billion, up 10.01% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.89 per share and revenue of $20.97 billion. These totals would mark changes of +19.69% and +13.22%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.22% higher. The Charles Schwab Corporation is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that The Charles Schwab Corporation has a Forward P/E ratio of 15.5 right now. This valuation marks a premium compared to its industry's average Forward P/E of 10.25.

It is also worth noting that SCHW currently has a PEG ratio of 0.69. 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 was holding an average PEG ratio of 0.69 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% 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.

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


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