SCHWAB (CHARLES) CORP (NYSE:SCHW) – A Strong Contender for Growth and Momentum Investors

SCHWAB (CHARLES) CORP (NYSE:SCHW) has been identified by our stock screener as a candidate that fits both Mark Minervini’s Trend Template and high-growth momentum criteria. The stock exhibits strong technical trends and solid fundamental growth, making it an interesting prospect for investors seeking momentum and growth opportunities.

Why SCHW Fits the Minervini Trend Template

The Minervini Trend Template focuses on identifying stocks in strong uptrends with favorable technical conditions. SCHW meets these criteria:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($83.08), 150-day ($80.07), and 200-day ($76.77) moving averages, confirming a bullish trend.
• Upward-Sloping Moving Averages: The 150-day and 200-day moving averages are trending upward, reinforcing long-term strength.
• Strong Relative Strength: With a ChartMill Relative Strength (CRS) score of 83.45, SCHW outperforms most of the market.
• Near 52-Week High: The stock is trading within 1% of its 52-week high ($89.85), indicating strong momentum.
• Bull Flag Pattern: The technical report notes a bull flag formation, suggesting a potential continuation of the uptrend.

High Growth Momentum Fundamentals

Beyond technical strength, SCHW demonstrates solid growth metrics:

• Earnings Growth:
  • Quarterly EPS growth (Q2Q) stands at 40.5%, with the previous quarter showing 48.5% growth.
  • Annual EPS growth (TTM) is 20.7%, reflecting strong profitability expansion.
• Revenue Growth:
  • Quarterly revenue growth (Q2Q) is 18.1%, with positive revisions for future quarters.
  • Free Cash Flow (FCF) per share grew 23.2% year-over-year.
• Profit Margins:
  • The latest quarter’s profit margin improved to 27%, up from 25.8% in the prior quarter.

Technical Summary

According to ChartMill’s technical analysis report, SCHW scores a perfect 10 for technical strength, supported by:

• A bullish short-term and long-term trend.
• Strong relative performance against peers in the Capital Markets industry.
• A well-defined support zone between $87.24–$88.11, providing a potential entry point.

While the setup quality is rated 5 out of 10, indicating some volatility, the overall trend remains favorable.

For a deeper analysis, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks that meet these criteria and is updated daily.

Disclaimer

This is not investment advice. The observations are based on current data, but investors should conduct their own research before making decisions.