SCHWAB (CHARLES) CORP (NYSE:SCHW) Shows High-Growth Momentum and Bullish Technical Setup

For investors looking for a structured way to find possible market leaders, a mixed method that looks at fundamental growth speed and technical condition can be a useful instrument. This process looks for companies showing solid and quickening earnings ability, a sign of high-growth speed, while also displaying firm price movements and helpful chart formations that indicate a possible moment to buy. The aim is to locate stocks where firm fundamentals are being supported by technical price movement.

SCHWAB (CHARLES) CORP (NYSE:SCHW) appears from such a search, showing a situation where firm earnings speed matches a technically good chart ready for a possible upward move.

Fundamental Growth Speed

The center of the high-growth speed method is finding companies with firm, and ideally quickening, earnings and sales increases. SCHW gets a 6 out of 10 on the ChartMill High Growth Momentum Rating, showing a solid fundamental growth picture. A closer examination of the given numbers shows the reasons for this score:

• Firm Year-Over-Year EPS Increase: The company's trailing twelve-month (TTM) earnings per share increased by a notable 50.15% compared to the year before.
• Recent Quarterly Quickening: While the latest quarter showed a good 37.6% year-over-year EPS increase, the two quarters before had even firmer rises of 70.1% and 56.2%, in that order. This sequence of very high growth in recent quarters is a key good sign.
• Steady Earnings Surprises: SCHW has exceeded analyst EPS estimates in all of the last four quarters, with an average surprise of 3.51%. This steady better performance builds trust in management's delivery and financial plans.
• Growing Profitability: The company's profit margin has shown step-by-step betterment over the last four reported quarters, climbing from 25.8% to 32.3% in the most recent time. Growing margins on rising sales is a standard indicator of operating leverage and a very efficient business model.
• Positive Analyst Changes: Analysts have become more optimistic, lifting their earnings estimates for the next year by 4.01% over the last three months. This upward change pattern often comes before more positive price movement.

Technical Condition and Setup Quality

A firm fundamental story must be paired with favorable price movement. According to the detailed technical report, SCHW receives a firm Technical Rating of 8, showing its good condition across several time periods.

• Firm Relative Performance: The stock is doing better than 78% of the wider market and 81% of its peers in the Capital Markets industry, a clear mark of leadership.
• Positive Long-Term Direction: The long-term direction is called positive, with the stock trading above all its important moving averages (20, 50, 100, and 200-day). It is also floating near its 52-week high.
• Helpful Consolidation: Maybe most important for timing, SCHW has a Setup Rating of 7. The analysis states the stock has been "trading in a tight range" lately, making a consolidation shape just below a set resistance area between $102.22 and $103.82. This kind of pause after a rise is often a forerunner to a possible upward move.
• Set Risk Points: The technical report notes clear support near the $99.91 level, giving a sensible area for a stop-loss order to handle risk if the expected upward move does not happen.

Combination: A Meeting of Factors

For the high-growth speed investor, SCHW shows a strong profile. The company is not just growing; it has lately shown very high quarterly earnings growth, is exceeding expectations, and is becoming more profitable. These are the precise fundamental triggers the method looks for. Technically, the stock is in a confirmed upward direction and is now absorbing its gains in a tight range, giving a possible moment to buy on a move above resistance. The meeting of these factors, firm earnings speed joining a technically good setup, is what this mixed search method is made to find.

This search is done each day to find new chances where firm fundamentals and technicals line up. You can review the present results and method for finding High Growth Momentum Breakout Setups through this link.

---

Disclaimer: This article is for information only and does not make up investment advice, a suggestion, or an offer or request to buy or sell any securities. The study is based on given data and should not be the only ground for any investment choice. All investing has risk, including the chance of losing the original amount. Always do your own research and think about talking with a qualified financial advisor before making any investment choices.