Brokerage giant Charles Schwab held up well during the summer market doldrums. On Wednesday, Schwab stock's Relative Strength (RS) Rating climbed into a higher percentile, as it got a lift from 63 to 73.
The improved RS Rating doesn't fully reflect the strength Schwab has shown recently though. All of its other key ratings are higher than its RS Rating. It has an 88 EPS Rating, putting it in the top 12% of all companies for recent quarters and years earnings growth. It also carries a 91 Composite Rating, an amalgam of IBD's other top five ratings. And its B+ Accumulation/Distribution Rating, on an A+ to E scale, shows that big funds such as ETFs and insurance funds are heavy buyers.
Looking For Winning Stocks? Try This Simple Routine
Schwab Stock Outpaces Peers, Market
Schwab stock hit a 96.24 all-time high in April before consolidating. And it soared a dazzling 244% from the bottom of the Covid market crash in March 2020 to that fresh high. Since April, it fell in sync with the bear market and bottomed at 59.35 in mid-June. It turned higher from there. On Wednesday, Schwab dipped 1.6% to 71.35 in sync with another down day for the market.
Regarding fundamentals, Schwab reported a 39% year-over-year jump in earnings last quarter, to 97 cents per share. Revenue grew 13% to $5.26 billion.
Peers In Top-5 Group
Schwab stock holds the No. 4 rank among its peers in the Finance-Investment Banking/Brokers industry group. LPL Financial and Freedom Holding are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily identifies price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the last 52 weeks compares to all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
