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

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In the latest trading session, The Charles Schwab Corporation (SCHW - Free Report) closed at $64.17, marking a +0.03% move from the previous day. This change outpaced the S&P 500's 2.01% loss on the day. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the company had lost 9.12% over the past month. This has lagged the Finance sector's loss of 8.01% and the S&P 500's loss of 6.08% 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 $0.92, up 31.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.06 billion, up 11.74% from the year-ago period.

SCHW's full-year Zacks Consensus Estimates are calling for earnings of $3.88 per share and revenue of $20.95 billion. These results would represent year-over-year changes of +19.38% and +13.1%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. The Charles Schwab Corporation is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, The Charles Schwab Corporation is holding a Forward P/E ratio of 16.55. For comparison, its industry has an average Forward P/E of 10.59, which means The Charles Schwab Corporation is trading at a premium to the group.

It is also worth noting that SCHW currently has a PEG ratio of 0.73. 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. SCHW's industry had an average PEG ratio of 0.73 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 160, which puts it in the bottom 37% 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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