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The Charles Schwab Corporation (SCHW) Outpaces Stock Market Gains: What You Should Know

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The Charles Schwab Corporation (SCHW - Free Report) closed at $59.78 in the latest trading session, marking a +0.56% move from the prior day. This change outpaced the S&P 500's 0.38% gain on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.54%.

Heading into today, shares of the company had lost 9.54% over the past month, lagging the Finance sector's loss of 2.21% and the S&P 500's loss of 1.68% in that time.

Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release. Meanwhile, our latest consensus estimate is calling for revenue of $4.73 billion, down 14.01% from the prior-year quarter.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.1% lower within the past month. The Charles Schwab Corporation is currently a Zacks Rank #3 (Hold).

In terms of valuation, The Charles Schwab Corporation is currently trading at a Forward P/E ratio of 18.18. Its industry sports an average Forward P/E of 16.23, so we one might conclude that The Charles Schwab Corporation is trading at a premium comparatively.

It is also worth noting that SCHW currently has a PEG ratio of 1.99. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.29 based on yesterday's closing prices.

The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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