Trade-Ideas LLC identified Charles Schwab ( SCHW) 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 12x the normal benchmarked social activity for this time of the day compared to its average of 3.58 mentions/day.
  • SCHW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $335.1 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.

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More details on SCHW:

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, 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 0.9%. SCHW has a PE ratio of 27. Currently there are 8 analysts that rate Charles Schwab a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for Charles Schwab has been 9.1 million shares per day over the past 30 days. Charles Schwab has a market cap of $37.0 billion and is part of the financial sector and financial services industry. The stock has a beta of 1.38 and a short float of 1.7% with 1.55 days to cover. Shares are down 17.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Charles Schwab as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 6.1%. 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 16.7% 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 ($0.99 versus $0.96).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 17.1% when compared to the same quarter one year prior, going from $321.00 million to $376.00 million.
  • 40.90% is the gross profit margin for SCHWAB (CHARLES) CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.12% is above that of the industry average.
  • Net operating cash flow has increased to $1,091.00 million or 10.53% when compared to the same quarter last year. Despite an increase in cash flow of 10.53%, SCHWAB (CHARLES) CORP is still growing at a significantly lower rate than the industry average of 276.16%.

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