With a market cap of $151.9 billion, Texas-based The Charles Schwab Corporation (SCHW) is one of the largest financial services firms in the United States, providing a broad range of investment, banking, wealth management, and brokerage services to individual investors, independent advisors, and institutions.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Charles Schwab fits this criterion perfectly. The company is known for helping democratize investing through low-cost trading, extensive investment products, and client-focused financial services.
Shares of the online stockbroker have slipped 18.7% from its 52-week high of $107.50. Shares of Charles Schwab have declined 8.3% over the past three months, trailing the State Street Financial Select Sector SPDR ETF’s (XLF) marginal dip over the same time frame.
SCHW stock is down 12.6% on a YTD basis, a less pronounced decline than XLF's 5.8% drop. Longer term, shares of Charles Schwab have increased marginally over the past 52 weeks, lagging behind XLF’s 2% return over the same time frame.
The stock has been trading below its 50-day and 200-day moving averages since February 2026.
The Charles Schwab Corporation has underperformed the broader market over the past year due to concerns over pressure on its net interest income, as clients continued shifting cash from low-yield sweep accounts into higher-yield alternatives. Investors have also remained cautious about the impact of elevated funding costs and deposit competition on profitability. Unlike many of the market's top-performing stocks, Schwab has also not benefited directly from the AI-driven rally that has fueled gains in the technology sector, contributing to its relative underperformance.
In contrast, its rival, Bank of America Corporation (BAC), has seen its stock fall 6.2% on a YTD basis, a less pronounced decline than SCHW stock. Moreover, over the past year, BAC shares have gained 17.1%, outpacing SCHW stock.
Despite the stock's underperformance over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 23 analysts covering the stock, and the mean price target of $114.95 represents a premium of 31.6% to current levels.
