The Charles Schwab Corporation (SCHW) Surpasses Market Returns: Some Facts Worth Knowing

The Charles Schwab Corporation (SCHW) closed the latest trading day at $56.43, indicating a +0.89% change from the previous session's end. The stock exceeded the S&P 500, which registered 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 stock has climbed by 8.75% in the past month, falling short of the Finance sector's gain of 9.23% and outpacing the S&P 500's gain of 8.22%.

Analysts and investors alike will be keeping a close eye on the performance of The Charles Schwab Corporation in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.70, indicating a 34.58% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to 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 anticipate earnings of $3.16 per share and a revenue of $19.05 billion, signifying shifts of -18.97% and -8.25%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The Charles Schwab Corporation. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. The Charles Schwab Corporation presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, The Charles Schwab Corporation is holding a Forward P/E ratio of 17.69. This denotes a premium relative to the industry's average Forward P/E of 16.22.

One should further note that SCHW currently holds a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Financial - Investment Bank industry had an average PEG ratio of 1.46 as trading concluded yesterday.

The Financial - Investment Bank industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 207, positioning it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges 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 coming trading sessions, be sure to utilize 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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