San Francisco-based Charles Schwab Corporation (SCHW) is a leading financial services company renowned for its comprehensive range of investment management, brokerage, and banking services. With a market cap of $130.43 billion and known for its robust technology platform, Schwab serves millions of individual and institutional clients, helping them achieve their financial goals.
Companies worth $10 billion or more are generally considered "large-cap" stocks and Charles Schwab exemplifies this category, signifying its substantial size, stability, and dominance in the financial services industry. By continually advancing its technology and expanding its services, Charles Schwab remains a critical player in the global financial ecosystem.
Shares of Charles Schwab have dropped 7.7% from their 52-week high of $79.49, which reached on May 22. Over the past three months, SCHW's shares have gained 8.6%, underperforming the broader Nasdaq Composite ($NASX), which gained 9.3% during the same period.
In the longer term, SCHW has gained 5.1% YTD, and the shares are up 33.1% over the past 52 weeks. In comparison, the Nasdaq is up 17.4% in 2024 and 29.3% over the past year.
However, SCHW has been trading above its 200-day moving average since late November, indicating some bullish trend.
Charles Schwab reported Q1 results on Apr. 15, narrowly beating analysts’ EPS estimates. The stock gained about 1.7% on the earnings release day and 2.6% the following day. Despite a 7% year-over-year decline in revenue to $4.74 billion and a 15% drop in net income, the company exceeded Wall Street's earnings expectations.
Highlighting the contrast in performance, one of SCHW's competitors, Interactive Brokers Group, Inc. (IBKR), has outperformed SCHW and Nasdaq, gaining 45.2% on a YTD basis.
Despite the recent underperformance relative to NASX, analysts are moderately optimistic about SCHW's prospects. The stock has a consensus rating of "Moderate Buy" from 19 analysts in coverage. The mean price target of $77.17 reflects a 5.2% premium over current levels.
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.
