Charles Schwab (SCHW) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - The Charles Schwab Corporation (SCHW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook driven by an upward trend in earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on changes in earnings estimates, which are crucial for stock price movements [2][5]. - The Zacks Consensus Estimate for Charles Schwab has increased by 3.7% over the past three months, with expected earnings of $4.80 per share for the fiscal year ending December 2025, unchanged from the previous year [9]. Impact of Institutional Investors - Changes in earnings estimates significantly influence institutional investors, who adjust their valuations accordingly, leading to stock price movements [5][6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8][10]. - The upgrade of Charles Schwab to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].