The Charles Schwab Corporation (SCHW) closed the most recent trading day at $54.41, moving +0.07% from the previous trading session. This change outpaced the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 1.54%.
Prior to today's trading, shares of the company had gained 10.42% over the past month. This has outpaced the Finance sector's gain of 2.29% and the S&P 500's gain of 4.14% in that time.
Investors will be hoping for strength from The Charles Schwab Corporation as it approaches its next earnings release. On that day, The Charles Schwab Corporation is projected to report earnings of $0.79 per share, which would represent a year-over-year decline of 18.56%. Our most recent consensus estimate is calling for quarterly revenue of $4.76 billion, down 6.59% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $19.61 billion. These totals would mark changes of -14.1% and -5.53%, respectively, from last year.
Any recent changes to analyst estimates for The Charles Schwab Corporation should also be noted by investors. 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.
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 0.95% 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 16.24. This represents a premium compared to its industry's average Forward P/E of 12.98.
Investors should also note that SCHW has a PEG ratio of 2.79 right now. 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 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 209, putting it in the bottom 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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