How does SCHWAB (CHARLES) CORP (NYSE:SCHW) stack up against Mark Minervini’s strategy?

Our stock screener has spotted SCHWAB (CHARLES) CORP (NYSE:SCHW) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

SCHW passes the Minervini Trend Template check!

SCHW checks all the boxes when evaluating the Minervini Trend Template. This is a set of basic technical criteria to identify stocks in strong uptrends:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Assessing Growth for SCHW

To evaluate a stock's growth potential, ChartMill utilizes a High Growth Momentum Rating (HGM) on a scale of 0 to 10. This assessment considers various growth and profitability aspects, like EPS and revenue growth, accelleration, surprises and revisions. SCHW has achieved a 5 out of 10:

Explosive Earnings Growth

• In the most recent financial report, SCHW reported a 40.54% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The 1-year EPS growth of SCHW (20.75%) highlights the company's ability to consistently improve its earnings performance and suggests a positive outlook for future profitability.
• SCHW has achieved significant quarter-to-quarter (Q2Q) revenue growth of 18.12%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• The sales growth of SCHW is accelerating: the current Q2Q growth of 18.12% is above the previous quarter Q2Q growth of 5.67%. Sales momentum and acceleration are key for high growth systems.
• Sales growth accelerated for 3 quarters in a row.
• Analysts' average next Quarter EPS Estimate for SCHW has witnessed a 14.69% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, SCHW demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable trend in its profit margin over the past year, SCHW demonstrates its ability to enhance profitability through efficient operations.
• With a solid Return on Equity (ROE) of 11.32%, SCHW exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.

Market Strength & Institutional Confidence

• SCHW exhibits a favorable ownership structure, with an institutional shareholder ownership of 75.49%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. SCHW scores a 4 out of 10:

SCHW has an average technical rating and the quality of the presented setup is also not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Check the latest full technical report of SCHW for a complete technical analysis.

Concluding

It looks like SCHWAB (CHARLES) CORP meets the Minervini criteria. More high growth momentum breakout stocks can be found in our High Growth Momentum + Trend Template screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.