Based in Westlake, Texas, The Charles Schwab Corporation (SCHW) operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company is valued at a market cap of $147.3 billion.
Shares of this financial services giant have outpaced the broader market over the past 52 weeks. Charles Schwab has rallied 30% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.8%. Moreover, on a YTD basis, the stock is up 10.5%, compared to SPX’s 2.7% rise.
Narrowing the focus, SCHW has underperformed the Financial Select Sector SPDR Fund’s (XLF) 31.2% gain over the past 52 weeks. However, it has outpaced XLF’s 5.8% return on a YTD basis.
On Jan. 29, Trump Media & Technology Group Corp. (DJT) announced plans to expand into the fintech sector through a partnership with Charles Schwab. The move suggests that DJT may launch its own investment vehicles and financial products for investors. Following the announcement, shares of Trump Media surged 6.8%, while Schwab’s stock saw a marginal increase.
Moreover, on Jan. 21, shares of SCHW soared 5.9% as the company delivered better-than-expected Q4 adjusted earnings of $1.01 per share and revenues of $5.3 billion. Moreover, the bottom line advanced by a notable 48.5% year-over-year, while the top line grew 19.5% from the year-ago quarter. Higher net interest revenue and solid growth in asset management and administration fees fueled by higher volumes and changes in the trading mix led to its robust performance. The absence of fee waivers, lower GAAP expenses, and solid brokerage account numbers further aided the company.
For the current fiscal year, ending in December 2025, analysts expect Schwab’s EPS to grow 28.6% year over year to $4.18. The company’s earnings surprise history is promising. It beat or met the Wall Street estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy,” which is based on 12 “Strong Buy,” two “Moderate Buy,” five “Hold,” one “Moderate Sell,” and two “Strong Sell” ratings.
This configuration is significantly more bullish than three months ago, with nine analysts suggesting a “Strong Buy” rating.
On Jan. 26, UBS maintained a “Buy” rating on Charles Schwab and raised its price target to $95, which indicates a 16.1% potential upside from the current levels.
The mean price target of $88.90 represents a modest 8.7% upside from SCHW’s current price levels, while the Street-high price target of $105 suggests an upside potential of 28.4%.
