The Charles Schwab Corporation [NYSE: SCHW] shares went lower by -3.21% from its previous closing of 37.72, now trading at the price of $36.51, also subtracting -1.21 points. Is SCHW stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.41 million contracts. Compared to the average trading volume of SCHW shares, the company saw a far better performance. Moreover, the stock has a 1.15B float and a 5.84% run over in the last seven days. SCHW share price has been hovering between 51.65 and 28.00 lately, and is definitely worthy of attention.
The Charles Schwab Corporation [NYSE:SCHW]: Analyst Rating and Earnings
Stock traders often pay close attention what Wall Street analysts have to say about a potential investment. For The Charles Schwab Corporation [SCHW], the latest consensus recommendation available followed its financial results for the fiscal quarter ending in 3/30/2020. On average, stock market experts give SCHW an Overweight rating. The average 12-month price forecast for this stock is $36.52, with the high estimate being $48.00, the low estimate being $34.00 and the median estimate amounting to $38.00. This is compared to its latest closing price of $37.72.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for The Charles Schwab Corporation [SCHW] is sitting at 3.93. This is compared to 1 month ago, when its average rating was 4.14.
Keep an eye out for the next scheduled publication date for this company’s financial results, which are expected to be released on 07/21/2020.
Fundamental Analysis of The Charles Schwab Corporation [SCHW]
Now let’s turn to look at profitability: with a current Operating Margin for The Charles Schwab Corporation [SCHW] sitting at 43.00% and its Gross Margin at 92.30%, this company’s Net Margin is now 31.40. These measurements indicate that The Charles Schwab Corporation [SCHW] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 16.90, and its Return on Invested Capital has reached 13.07. Its Return on Equity is 19.30%, and its Return on Assets is 1.30%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SCHW financial performance.
Turning to investigate this organization’s capital structure, The Charles Schwab Corporation [SCHW] has generated a Total Debt to Total Equity ratio of 37.16. Similarly, its Total Debt to Total Capital is 27.09, while its Total Debt to Total Assets stands at 2.75. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 38.94, and its Long-Term Debt to Total Capital is 24.74.
What about valuation? This company’s Enterprise Value to EBITDA is 2.47 and its Total Debt to EBITDA Value is 1.42. The Enterprise Value to Sales for this firm is now 1.12, and its Total Debt to Enterprise Value stands at 0.25. The Charles Schwab Corporation [SCHW] has a Price to Book Ratio of 3.23, a Price to Cash Flow Ratio of 6.09 and P/E Ratio of 14.27. These metrics all suggest that The Charles Schwab Corporation is more likely to generate a positive ROI.
The Charles Schwab Corporation [SCHW] has 1.30B shares outstanding, amounting to a total market cap of 48.87B. Its stock price has been found in the range of 28.00 to 51.65. At its current price, it has moved down by -29.31% from its 52-week high, and it has moved up 30.39% from its 52-week low.
This stock’s Beta value is currently 1.29, which indicates that it is 3.22% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 51.24. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is The Charles Schwab Corporation [SCHW] a Reliable Buy?
Shares of The Charles Schwab Corporation [SCHW], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.
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Author: Kevin Freeman