Why The Charles Schwab Corporation (SCHW) Dipped More Than Broader Market Today
In the latest market close, The Charles Schwab Corporation (SCHW) reached $68.80, with a -1.08% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.06%, and the Nasdaq, a tech-heavy index, lost 0.56%.
The the stock of company has risen by 13.42% in the past month, leading the Finance sector's gain of 8.34% and the S&P 500's gain of 5.24%.
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's earnings report is set to go public on January 17, 2024. On that day, The Charles Schwab Corporation is projected to report earnings of $0.68 per share, which would represent a year-over-year decline of 36.45%. Simultaneously, our latest consensus estimate expects the revenue to be $4.58 billion, showing a 16.73% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $3.14 per share and a revenue of $18.96 billion, demonstrating changes of -19.49% and -8.7%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for The Charles Schwab Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.79% fall in the Zacks Consensus EPS estimate. At present, The Charles Schwab Corporation boasts a Zacks Rank of #3 (Hold).
Digging into valuation, The Charles Schwab Corporation currently has a Forward P/E ratio of 22.16. This indicates a premium in contrast to its industry's Forward P/E of 18.42.
It is also worth noting that SCHW currently has a PEG ratio of 3.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Financial - Investment Bank industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank is ordered 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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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report