Shares of The Charles Schwab Corporation (SCHW) have been strong performers lately, with the stock up 2.2% over the past month. The stock hit a new 52-week high of $105.81 in the previous session. Charles Schwab has gained 4.1% since the start of the year compared to the 17.9% gain for the Zacks Finance sector and the 36.1% return for the Zacks Financial - Investment Bank industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on January 21, 2026, Charles Schwab reported EPS of $1.39 versus consensus estimate of $1.36.
For the current fiscal year, Charles Schwab is expected to post earnings of $5.73 per share on $26.24 in revenues. This represents a 17.66% change in EPS on a 9.68% change in revenues. For the next fiscal year, the company is expected to earn $6.76 per share on $29 in revenues. This represents a year-over-year change of 17.96% and 10.54%, respectively.
Valuation Metrics
Charles Schwab may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Charles Schwab has a Value Score of B. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 18.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 17.4X versus its peer group's average of 14.4X. Additionally, the stock has a PEG ratio of 0.87. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Charles Schwab currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Charles Schwab fits the bill. Thus, it seems as though Charles Schwab shares could still be poised for more gains ahead.
How Does SCHW Stack Up to the Competition?
Shares of SCHW have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Interactive Brokers Group, Inc. (IBKR). IBKR has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Interactive Brokers Group, Inc. beat our consensus estimate by 25.00%, and for the current fiscal year, IBKR is expected to post earnings of $2.31 per share on revenue of $6.39 billion.
Shares of Interactive Brokers Group, Inc. have gained 17% over the past month, and currently trade at a forward P/E of 33.42X and a P/CF of 151.4X.
The Financial - Investment Bank industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SCHW and IBKR, even beyond their own solid fundamental situation.
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The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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