The Charles Schwab Corporation (SCHW) closed the last trading day at $56.43, indicating a +0.89% change from the previous session close. The stock outperformed the S&P 500, which recorded a gain of 0.06% for the day. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.11%.
The company’s shares climbed 8.75% in the past month, dwarfing the Financials sector’s gain of 9.23% and outperforming the S&P 500’s gain of 8.22%.
Analysts and investors alike will be watching The Charles Schwab Corporation’s performance in its upcoming earnings release. The company is forecast to post EPS of $0.70, indicating a 34.58% decline compared to the corresponding quarter last year. Meanwhile, the latest consensus estimate predicts that the revenue will be $4.67 billion, indicating a 15.04% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates forecast earnings of $3.16 per share and revenue of $19.05 billion, representing changes of -18.97% and -8.25%, respectively, from last year.
Additionally, investors should keep an eye on some recent revisions to analyst forecasts for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive changes in ratings mean analyst optimism regarding the company’s business and profitability.
Our research suggests that these changes in valuations have a direct relationship with upcoming stock price performance. To take advantage of this, we created the Zacks Rank, a unique model that incorporates these rating changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), maintains an admirable record of outperformance, independently verified, with #1 stocks contributing an average annual return of +25% since 1988. More than the last month, there was a 0.35% drop in the Zacks Consensus EPS estimate. The Charles Schwab Corporation currently has a Zacks Rank of number 3 (Hold).
Looking at its valuation, The Charles Schwab Corporation holds a Forward P/E ratio of 17.69. This indicates a premium relative to the industry’s average Forward P/E of 16.22.
It should be further noted that SCHW currently holds a PEG ratio of 2.47. The PEG ratio is similar to the commonly used P/E ratio, but this measure also includes the company’s projected earnings growth. The Financial – Investment Banking industry had an average PEG ratio of 1.46 as trading ended yesterday.
The Finance – Investment banking industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 207, placing it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank measures 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 upcoming trading sessions, be sure to use Zacks.com.
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The Charles Schwab Corporation (SCHW): Free Analysis Report
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