The Charles Schwab Corporation (
SCHW Quick Quote SCHW - Free Report) closed the most recent trading day at $52.79, moving +1.58% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 3.35%.
Prior to today's trading, shares of the company had lost 2.16% over the past month. This has lagged the Finance sector's loss of 0.9% and the S&P 500's gain of 1.61% in that time.
The Charles Schwab Corporation will be looking to display strength as it nears its next earnings release. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.79 per share. This would mark a year-over-year decline of 18.56%. Meanwhile, our latest consensus estimate is calling for revenue of $4.76 billion, down 6.63% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $19.62 billion, which would represent changes of -14.1% and -5.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 3.77% lower. 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 15.52 right now. For comparison, its industry has an average Forward P/E of 12.6, 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 2.67 right now. 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 0.86 at yesterday's closing price.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.