Westlake, Texas-based 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. Valued at a market cap of $136.3 billion, the company serves retail and institutional investors with a wide range of financial products.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and SCHW fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the capital markets industry. The company is known for its low-cost trading, innovative digital platforms, and client-centric approach. It has a strong market position in discount brokerage and retirement planning. With a focus on technology, low fees, and financial education, SCHW continues to be a major player in the evolving investment landscape.
This financial services giant has slipped 11.1% from its 52-week high of $84.50, achieved on Feb. 11. It has declined 7.8% over the past three months, still outpacing the SPDR S&P Capital Markets ETF’s (KCE) 10.8% loss over the same time frame.
Moreover, on a YTD basis, shares of SCHW are up 1.5%, outpacing KCE’s 4.9% decline over the same time frame. However, in the longer term, SCHW has gained 11.1% over the past 52 weeks, lagging behind KCE’s 21.9% return.
To confirm its bullish trend, SCHW has been trading above its 200-day moving average since mid-October 2024. However, it is trading below its 50-day moving average recently.
On Jan. 21, Charles Schwab’s stock surged 5.9% following its strong Q4 earnings release that exceeded Wall Street's expectations. The company posted adjusted EPS of $1.01 and revenue of $5.3 billion, reflecting robust year-over-year growth of 48.5% and 19.5%, respectively. Its strong performance was mainly driven by higher net interest revenue and solid growth in asset management and administration fees fueled by an increase in volumes and changes in the trading mix. Lower expenses and strong new brokerage account openings further aided the company.
SCHW has considerably lagged behind its rival, Morgan Stanley’s (MS) 35.2% rise over the past 52 weeks but has outpaced MS’ 3.2% fall on a YTD basis.
Given SCHW’s recent outperformance relative to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 22 analysts covering it, and the mean price target of $89.95 suggests a modest 19.7% premium to its current levels.
On the date of publication, Neharika Jain 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.
