Westlake, Texas-based The Charles Schwab Corporation (SCHW) operates as a financial holding company. With a market cap of $144.4 billion, Charles Schwab provides various services including wealth management, securities brokerage, banking, asset management, custody, and financial advisory.
Companies worth $10 billion or more are generally described as "large-cap stocks," Stryker fits this bill perfectly. Given the company holds trillions in client assets and employs over 32,000 people, its valuation above this mark is not surprising. The company serves over 36 million active brokerage accounts and strives to disrupt Wall Street’s traditional approaches by finding ways to improve the investing experience for its clients.
SCHW recently touched its 52-week high of $83.35 on Nov. 29 and is currently trading 2.2% below that peak. Charles Schwab’s stock prices have soared 27.6% over the past three months, outpacing the Financial Select Sector SPDR Fund’s (XLF) 10.6% gains over the same time frame.
However, over the longer-term Charles Schwab has underperformed the financial sector. SCHW stock gained 18.5% on a YTD basis and 30.1% over the past 52 weeks, compared to XLF’s surge of 33.7% in 2024 and 39.1% over the past year.
To confirm the recent bullish trend, SCHW has traded consistently above its 50-day moving average since early October and 200-day moving average since mid-October.
Charles Schwab’s stock prices surged 6.1% after the release of its impressive Q3 results on Oct. 15. Driven by healthy net asset gathering and equity market resilience, the company’s total client assets increased by a staggering 26.8% year-over-year, amounting to over $9.9 trillion. This has led to a massive 20.6% year-over-year growth in asset management and administration fees, reaching $1.5 billion. However, the company’s total net revenues grew by a relatively modest 5.2% compared to the year-ago quarter to $4.8 billion, due to a dip in interest revenues and bank deposit account fees. Nevertheless, the company has showcased commendable expense discipline which led to a staggering 27.7% year-over-year growth in net income to shareholders, totaling $1.3 billion.
Charles Schwab has lagged behind its peer Morgan Stanley’s (MS) 39.4% gains on a YTD basis and 60.1% returns over the past year.
Among the 21 analysts covering the SCHW stock, the consensus rating is a “Moderate Buy.” As of writing, the stock is trading above its mean price target of $78.95.
