SCHWAB (CHARLES) CORP (NYSE:SCHW) – A Strong Growth Candidate Meeting Minervini’s Criteria

SCHWAB (CHARLES) CORP (NYSE:SCHW) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company demonstrates strong technical trends and solid fundamental growth, making it a candidate worth examining for investors focused on high-growth opportunities.

Why SCHW Meets Minervini’s Trend Template

Minervini’s Trend Template is designed to identify stocks in strong uptrends with favorable technical conditions. SCHW meets all key criteria:

• Price Above Key Moving Averages:

  • Current price ($92.70) is above the 50-day ($88.33), 150-day ($81.38), and 200-day ($79.20) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.

• Upward-Trending Moving Averages:

  • The 150-day and 200-day MAs are rising, reinforcing long-term strength.

• Price Relative to 52-Week High/Low:

  • Trading within 0.7% of its 52-week high ($93.35).
  • Up 78% from its 52-week low ($61.15).

• Strong Relative Strength:

  • Outperforms 87% of all stocks and 85% of its Capital Markets industry peers.

High Growth Momentum Fundamentals

Beyond technical strength, SCHW exhibits accelerating earnings and revenue growth, key traits for high-growth investors:

• Earnings Growth:

  • Quarterly EPS growth (Q2Q) of 40.5%, with prior quarter growth at 48.5%.
  • Full-year EPS growth (TTM) of 20.7%, showing consistent improvement.

• Revenue Trends:

  • Quarterly revenue growth of 18.1%, with upward revisions for next quarter (+24.1%).
  • Profit margins expanded to 27.0% in the latest quarter, up from 19.1% a year ago.

• Analyst Confidence:

  • EPS estimates for next year have been revised up by 4.2% over the past three months.

Technical Outlook

According to ChartMill’s technical report, SCHW scores a perfect 10 on technical health, with both short- and long-term trends positive. Key observations:

• Trading near its 52-week high with strong volume support.
• Multiple support levels between $87.24 - $88.33, providing a cushion against pullbacks.
• Resistance is noted around $92.71 - $93.04, a breakout above this could signal further upside.

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

Our High Growth Momentum + Trend Template screener lists more stocks that fit this strategy.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.