Street Reports

Analyst’s Review to Watch: Charles Schwab Corp (NYSE:SCHW)


The shares of Charles Schwab Corp (NYSE:SCHW) currently has mean rating of 2.3 while 10 analyst have recommended the shares as ‘BUY’ ,3 recommended as ‘OUTPERFORM’ and 6 recommended as ‘HOLD’.The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell

The mean price target for the shares of Charles Schwab Corp (NYSE:SCHW) is at $32.43 while the highest price target suggested by the analysts is $36.00 and low price target is $28.00. The mean price target is calculated keeping in view the consensus of 15 brokerage firms.

The company’s mean estimate for sales for the current quarter ending Jun 16 is 1.80B by 16 analysts. The means estimate of sales for the year ending Dec 16 is 7.33B by 17 analysts.

The average estimate of EPS for the current fiscal quarter for Charles Schwab Corp (NYSE:SCHW) stands at $0.30 while the EPS for the current year is fixed at $1.26 by 18.00 analysts

The next one year’s EPS estimate is set at 1.53 by 20.00 analysts while a year ago the analysts suggested the company’s EPS at $1.26. The analysts also projected the company’s long-term growth at 20.55% for the upcoming five years

In its latest quarter ended on 31 Mar 2016 , Charles Schwab Corp (NYSE:SCHW) reported earnings of $0.29. The posted earnings missed the analyst’s consensus by $0.00 with the surprise factor of 0.00%. In the matter of earnings surprises, the term ‘Cockroach Effect’ is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Charles Schwab Corp (NYSE:SCHW) traded up +4.76% during trading on Friday, hitting $29.70 . The stock had a trading volume of 12.7 M shares. The firm has a 50 day moving average of $28.91 and a 200-day moving average of $28.24. The stock has a market cap of $39.24B and a price-to-earnings ratio of 26.99. On Aug 6, 2015 the shares registered one year high at $35.72 and the one year low was seen on Feb 11, 2016.

On June 16, 2016 Charles Schwab Corp (NYSE:SCHW) has released findings from its 19th semi-annual Independent Advisor Outlook Study (IAOS), which reflects the opinions of 930 advisors at independent investment advisory firms that custody with Schwab. The study results, representing more than $300 billion in assets under management, were announced to a group of advisors during Schwab’s annual EXPLORE conference. Complete findings are available for download here.

Highlights from the Study include:

  • Optimistic, in spite of increased competition and mixed implications of new DOL Fiduciary Rule
  • Nearly three quarters (73%) of advisors are ‘very optimistic about opportunities for registered investment advisors – RIAs – to grow in the next five years’
  • Two in three (66%) expect more competition for securing assets in this timeframe and, likewise, believe the need to differentiate their firms from competition is greater than ever (65%)
  • One in three (36%) think the Department of Labor’s Fiduciary Rule will increase competition for RIAs, and that it will create greater challenges for RIA firms to differentiate themselves from wirehouse firms (35%)
  • More than half (57%) believe the rule will drive more questions/interest from clients in an advisor’s fiduciary responsibilities

An uphill path to meet clients’ investment goals

  • Advisor confidence that the S&P will continue its upward trajectory is at a four year low, with just over half (56%) of advisors expecting it to increase in the next six months
  • Advisors and clients alike share concerns about market volatility, the interest rate environment and the specter of another recession in the US
  • The majority of advisors (90%) have needed to reassure at least some portion of their client base in the past six months that they will achieve their investment goals
  • Over half (57%) of advisors expect difficulty in achieving their clients’ investment goals in the current investment environment.
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