The Charles Schwab Corporation (SCHW) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects through projected and historical earnings, sales, and cash flow [4] - The Momentum Score capitalizes on price trends and earnings outlook changes to identify favorable investment opportunities [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down choices [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for maximizing upside potential [9] Company Spotlight: The Charles Schwab Corporation - The Charles Schwab Corporation, headquartered in Westlake, TX, offers a range of financial services including wealth management, securities brokerage, and asset management, with nearly 400 branches across the U.S. and international locations [11] - Currently rated 3 (Hold) by Zacks, SCHW has a VGM Score of A and a Growth Style Score of A, indicating a projected year-over-year earnings growth of 47.7% for the current fiscal year [12] - With positive earnings estimate revisions and an average earnings surprise of +6.6%, SCHW is positioned as a strong candidate for growth investors [12][13]