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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 at $63.39 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.16% gain on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.17%.

Heading into today, shares of the company had lost 6.08% over the past month, outpacing the Finance sector's loss of 7.94% and the S&P 500's loss of 6.79% in that time.

Wall Street will be looking for positivity from The Charles Schwab Corporation as it approaches its next earnings report date. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $5.06 billion, up 11.74% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.87 per share and revenue of $20.95 billion, which would represent changes of +19.08% and +13.1%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.44% lower. The Charles Schwab Corporation currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, The Charles Schwab Corporation is holding a Forward P/E ratio of 16.52. This represents a premium compared to its industry's average Forward P/E of 10.59.

We can also see 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 178, which puts it in the bottom 30% 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.

To follow SCHW in the coming trading sessions, be sure to utilize Zacks.com.


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