The Charles Schwab Corporation (SCHW) Advances But Underperforms Market: Key Facts
The Charles Schwab Corporation (SCHW) closed at $51.78 in the latest trading session, marking a +0.06% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 0.58%.
Shares of the company have depreciated by 13.49% over the course of the past month, underperforming the Finance sector's loss of 3.1% and the S&P 500's loss of 2.61%.
Market participants will be closely following the financial results of The Charles Schwab Corporation in its upcoming release. The company plans to announce its earnings on October 16, 2023. The company is predicted to post an EPS of $0.76, indicating a 30.91% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.69 billion, indicating a 14.7% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.23 per share and a revenue of $19.26 billion, indicating changes of -17.18% and -7.22%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for The Charles Schwab Corporation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.23% downward. The Charles Schwab Corporation is currently a Zacks Rank #3 (Hold).
With respect to valuation, The Charles Schwab Corporation is currently being traded at a Forward P/E ratio of 16.03. For comparison, its industry has an average Forward P/E of 16.03, which means The Charles Schwab Corporation is trading at no noticeable deviation to the group.
It is also worth noting that SCHW currently has a PEG ratio of 2.14. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry had an average PEG ratio of 1.05 as trading concluded yesterday.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
