Charles Schwab stock is due to report earnings on the 16th before the bell. According to analyst recommendations, SCHW is expected to report an EPS of $1.22.

Charles Schwab (NYSE: SCHW) is set to report its Q3 2024 earnings on Thursday 16^th October, before the market opens. Analysts expect the company to post an Earnings Per Share (EPS) of $1.22, up from $0.77 during the same period last year. This represents an impressive 58.4% year-on-year growth in profitability.

Strong Fundamentals:
Looking at its fundamentals, Schwab is in solid shape. The stock is currently trading at a Price-to-Earnings (P/E) ratio of 24.67, and analysts are expecting this to drop to 17.06 over the next year, suggesting a potential increase in earnings and a more attractive valuation. This shows strong growth expectations for the coming months, supported by the robust EPS growth.

Analyst Sentiment:
Schwab is receiving positive attention from analysts. TipRanks rates the stock as a "Strong Buy", with 13 out of 15 analysts recommending it as a buy. The average price target for Schwab is $110.80, which suggests potential upside from its current price.

Stock Price Outlook:
Given the 58.4% increase in earnings over the past year, Schwab's share price could be worth around $113 per share, assuming the stock continues to be valued similarly to how it was priced on October 15th, 2024 (just before its last earnings release).

Technical Picture:
Looking at the chart, Schwab’s Relative Strength Index (RSI) is currently neutral at 46, meaning the stock is neither overbought nor oversold. There’s a rising trendline that could act as support in case of a market pullback. The trendline sits between $74 and $77, which represents a 10-15% decline from current levels.

What Could Happen Next?
If the market reacts positively to the earnings report, we could see Schwab's price push toward the $110-$115 range. However, if the earnings miss expectations, the stock may dip towards its trendline support at $74-$77, which could offer a buying opportunity for long-term investors.

Strategy:
For investors looking to play this, a two-step approach could be effective:

• Buy now if you're comfortable with the stock's current valuation.
• Buy more on a dip if the price drops to around $74–$77, taking advantage of the trendline support.

With strong earnings growth and solid analyst recommendations, Schwab remains a stock to keep on your radar, but be prepared for short-term volatility following the earnings release.