The Charles Schwab Corporation (SCHW) Declines More Than Market: Some Information for Investors

The Charles Schwab Corporation (SCHW) ended the recent trading session at $62.64, demonstrating a -0.82% swing from the preceding day's closing price. This change lagged the S&P 500's 0.54% loss on the day. Elsewhere, the Dow saw a downswing of 0.11%, while the tech-heavy Nasdaq depreciated by 0.84%.

Coming into today, shares of the company had gained 13.13% in the past month. In that same time, the Finance sector gained 10.48%, while the S&P 500 gained 8.62%.

The investment community will be closely monitoring the performance of The Charles Schwab Corporation in its forthcoming earnings report. The company's upcoming EPS is projected at $0.70, signifying a 34.58% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.68 billion, indicating a 14.93% downward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.16 per share and revenue of $19.05 billion, indicating changes of -18.97% and -8.22%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for The Charles Schwab Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.03% increase. The Charles Schwab Corporation is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, The Charles Schwab Corporation is currently exchanging hands at a Forward P/E ratio of 19.96. This signifies a premium in comparison to the average Forward P/E of 16.6 for its industry.

It is also worth noting that SCHW currently has a PEG ratio of 2.79. 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. As of the close of trade yesterday, the Financial - Investment Bank industry held an average PEG ratio of 1.5.

The Financial - Investment Bank industry is part of the Finance sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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