The Charles Schwab Corporation (SCHW) Hit a 52 Week High, Can the Run Continue?

Company Performance - Shares of The Charles Schwab Corporation (SCHW) have increased by 2.2% over the past month, reaching a new 52-week high of $105.81 [1] - Year-to-date, Charles Schwab has gained 4.1%, while the Zacks Finance sector and the Zacks Financial - Investment Bank industry have seen gains of 17.9% and 36.1%, respectively [1] Earnings and Revenue Expectations - Charles Schwab has consistently beaten the Zacks Consensus Estimate in the last four quarters, with the latest EPS reported at $1.39 against a consensus of $1.36 [2] - For the current fiscal year, earnings are expected to be $5.73 per share on revenues of $26.24 billion, reflecting a 17.66% increase in EPS and a 9.68% increase in revenues [3] - For the next fiscal year, projected earnings are $6.76 per share on revenues of $29 billion, indicating year-over-year changes of 17.96% and 10.54%, respectively [3] Valuation Metrics - Charles Schwab currently trades at 18.2 times the current fiscal year EPS estimates, which is above the peer industry average of 16.4 times [7] - On a trailing cash flow basis, the stock trades at 17.4 times compared to the peer group's average of 14.4 times [7] - The stock has a PEG ratio of 0.87, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Charles Schwab holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of B, and both Growth and Momentum Scores are A, resulting in a combined VGM Score of A [6][8] Industry Comparison - Interactive Brokers Group, Inc. (IBKR) is a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of C, Growth Score of B, and Momentum Score of A [9] - IBKR is expected to post earnings of $2.31 per share on revenues of $6.39 billion for the current fiscal year, having beaten the consensus estimate by 25% last quarter [10] - The Financial - Investment Bank industry is performing well, ranking in the top 14% of all industries, providing favorable conditions for both SCHW and IBKR [11]