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The Charles Schwab Corporation (SCHW) Falls More Steeply Than Broader Market: What Investors Need to Know

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The Charles Schwab Corporation (SCHW - Free Report) closed at $63.58 in the latest trading session, marking a -1.27% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.17%, and the Nasdaq, a tech-heavy index, lost 0.92%.

The company's stock has climbed by 1.21% in the past month, falling short of the Finance sector's gain of 3.63% and the S&P 500's gain of 3.56%.

Investors will be eagerly watching for the performance of The Charles Schwab Corporation in its upcoming earnings disclosure. In that report, analysts expect The Charles Schwab Corporation to post earnings of $0.73 per share. This would mark a year-over-year decline of 21.51%. In the meantime, our current consensus estimate forecasts the revenue to be $4.69 billion, indicating an 8.32% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $3.33 per share and a revenue of $19.66 billion, demonstrating changes of +6.39% and +4.39%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.09% decrease. At present, The Charles Schwab Corporation boasts a Zacks Rank of #4 (Sell).

With respect to valuation, The Charles Schwab Corporation is currently being traded at a Forward P/E ratio of 19.36. This represents a premium compared to its industry's average Forward P/E of 16.76.

It is also worth noting that SCHW currently has a PEG ratio of 3.4. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank was holding an average PEG ratio of 1.17 at yesterday's closing price.

The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 31, placing it within the top 13% of over 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.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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