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The Charles Schwab Corporation (SCHW) Advances But Underperforms Market: Key Facts

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The Charles Schwab Corporation (SCHW - Free Report) closed at $67.40 in the latest trading session, marking a +0.54% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.82%.

Shares of the company have appreciated by 4.1% over the course of the past month, outperforming the Finance sector's gain of 2.48% and the S&P 500's gain of 1.76%.

Analysts and investors alike will be keeping a close eye on the performance of The Charles Schwab Corporation in its upcoming earnings disclosure. On that day, The Charles Schwab Corporation is projected to report earnings of $0.74 per share, which would represent a year-over-year decline of 20.43%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.72 billion, indicating a 7.7% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $19.71 billion, which would represent changes of +6.71% and +4.62%, respectively, from the prior year.

Any recent changes to analyst estimates for The Charles Schwab Corporation should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. As of now, The Charles Schwab Corporation holds a Zacks Rank of #3 (Hold).

Looking at valuation, The Charles Schwab Corporation is presently trading at a Forward P/E ratio of 20.08. This represents a premium compared to its industry's average Forward P/E of 17.09.

It's also important to note that SCHW currently trades at a PEG ratio of 1.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Financial - Investment Bank industry stood at 1.16 at the close of the market yesterday.

The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.

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


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