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The Charles Schwab Corporation (SCHW) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, The Charles Schwab Corporation (SCHW) closed at $85.76, marking a +1.97% move from the previous day.

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This story originally appeared on Zacks

The Charles Schwab Corporation (SCHW) closed at $85.76 in the latest trading session, marking a +1.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

- Zacks

Coming into today, shares of the company had gained 7.17% in the past month. In that same time, the Finance sector gained 4.31%, while the S&P 500 gained 4.56%.

Wall Street will be looking for positivity from The Charles Schwab Corporation as it approaches its next earnings report date. This is expected to be January 18, 2022. The company is expected to report EPS of $0.81, up 9.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.67 billion, up 11.81% from the year-ago period.

Investors might also notice recent changes to analyst estimates for The Charles Schwab Corporation. Recent revisions tend to reflect the latest 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. The Charles Schwab Corporation is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, The Charles Schwab Corporation is holding a Forward P/E ratio of 26.02. This valuation marks a premium compared to its industry's average Forward P/E of 11.24.

Also, we should mention that SCHW has a PEG ratio of 1.15. 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. Financial - Investment Bank stocks are, on average, holding a PEG ratio of 1.1 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 14, which puts it in the top 6% of all 250+ industries.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.



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