Unusual Social Activity Around Charles Schwab (SCHW) Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Charles Schwab as such a stock due to the following factors:
- SCHW has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 6.06 mentions/day.
- SCHW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $163.5 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SCHW with the Ticky from Trade-Ideas. See the FREE profile for SCHW NOW at Trade-Ideas
More details on SCHW:
The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, money management, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The stock currently has a dividend yield of 0.8%. SCHW has a PE ratio of 31.8. Currently there are 4 analysts that rate Charles Schwab a buy, 2 analysts rate it a sell, and 7 rate it a hold.
The average volume for Charles Schwab has been 7.2 million shares per day over the past 30 days. Charles Schwab has a market cap of $39.6 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.45 and a short float of 1.9% with 3.90 days to cover. Shares are down 0.8% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Charles Schwab as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.8%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- SCHWAB (CHARLES) CORP has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SCHWAB (CHARLES) CORP increased its bottom line by earning $0.96 versus $0.78 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.96).
- Net operating cash flow has slightly increased to $860.00 million or 3.48% when compared to the same quarter last year. In addition, SCHWAB (CHARLES) CORP has also modestly surpassed the industry average cash flow growth rate of -6.01%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market on the basis of return on equity, SCHWAB (CHARLES) CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full Charles Schwab Ratings Report.
null