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With a market cap of $128.57 billion, Charles Schwab Corporation (SCHW) operates as a leading savings and loan holding company. Headquartered in Westlake, Texas, it provides a wide range of financial services, including wealth management, securities brokerage, banking, asset management, and financial advisory, both in the U.S. and internationally. Known for its robust technology platform, Schwab serves millions of individual and institutional clients, helping them achieve their financial goals.
Charles Schwab has outperformed the broader market over the last year. The stock has gained 39.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.1%. But in 2024, SCHW stock gained 5.5%, underperforming the SPX’s 10.4% increase on a YTD basis.
Narrowing the focus, SCHW’s outperformance is also apparent in comparison to the iShares U.S. Financial Services ETF (IYG). The exchange-traded fund has gained 32.6% over the past year, lagging SCHW’s performance. However, IYG’s 9.7% returns on a YTD basis outshine the stock’s gains over the same time frame.
On Apr. 15, Charles Schwab reported Q1 results, narrowly beating analysts’ EPS estimates. The stock gained about 1.7% on the earnings release day and 2.6% the following day.
For the current fiscal year, ending in December, analysts expect SCHW to report an EPS growth of 8.6% to $3.40 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering SCHW stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” five “Holds,” one “Moderate Sell,” and one “Strong Sell.”
This configuration is slightly more bullish than three months ago, with 10 suggesting a “Strong Buy.”
Craig Siegenthaler from Bank of America Securities maintained a “Sell” rating on Charles Schwab, with a price target of $70.00. However, Alexander Blostein from Goldman Sachs maintained a “Hold” rating on Charles Schwab, with a price target of $75.00. In addition, William Katz from TD Cowen maintained a “Buy” rating on Charles Schwab with a price target of $88.00.
The mean price target of $76.83 represents a 6.2% premium to SCHW’s current price levels. The Street-high price target of $92 suggests an upside potential of 27.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
