The Charles Schwab Corporation (SCHW) shares soared 7.6% in the last trading session to close at $75.25. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% loss over the past four weeks.
Charles Schwab shares rallied sharply, benefiting from broad market strength following President Donald Trump’s announcement of a 90-day suspension on tariffs for non-retaliating countries. The policy shift eased trade tensions and improved market sentiment, fueling a sharp uptick in SCHW shares.
This company is expected to post quarterly earnings of $0.99 per share in its upcoming report, which represents a year-over-year change of +33.8%. Revenues are expected to be $5.48 billion, up 15.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Charles Schwab, the consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SCHW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Charles Schwab is a member of the Zacks Financial - Investment Bank industry. One other stock in the same industry, Piper Sandler Companies (PIPR), finished the last trading session 14% higher at $240.34. PIPR has returned -15.9% over the past month.
Piper Sandler Companies' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.42. Compared to the company's year-ago EPS, this represents a change of -13.3%. Piper Sandler Companies currently boasts a Zacks Rank of #3 (Hold).
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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Piper Sandler Companies (PIPR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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