Stockchase InsightsCharles Schwab CorpSCHWDON'T BUYMar 31, 2023

It reports tomorrow. Is a strong performer and this should continue.

AI fears have hit this (and many stocks), but it now trades at 16x PE, the cheapest in years. It's a steal. The AI threat is non-existent.

It reports Wednesday. It will benefit from the $100-transition of wealth between generations.

Good company, well managed. Doing well, and that should continue. High beta stock, will return 25% more than the market does on the upside (yay), but 25% or more on the downside (boo). So it's a call on the market.

 It reports Friday. Beware: the short sellers dominate the trading at the open of trading. Be careful before buying.

Will grow if interest rates rise, which is happening. They grow as their assets grow from bringing in new business or grow existing assets. 

They report Tuesday. Their previous quarters were punished. Problems are behind them now, he thinks.

It's a loser. He got too enthusiastic about it, but the CEO told a good story, albeit uneven. He needs to see something positive before buying more shares. He blames himself for buying this.

It's been a tough stock to own in recent years, but they've absorbed Ameritrade and we're starting to see the benefit of that. They are and should cut back on their bank business. They can grow earnings around 5-10% annually in coming years.

Likes it a lot. Short-term issues are temporary. Buy a half-position now and half when a knucklehead analyst downgrades it.

Previously caught up in regional bank concerns, and now interest rates coming down not necessarily good (less $$ earned on the float kept for customers). Can't win. Great platform, makes a lot of money, so no worries about the company. Trading volume has probably slowed a bit. Well run. He's not interested.

Had a modest downgrade today, but that analyst still expects 49% earnings growth in 2025. This trades at 19x PE and 32% EPS growth. She's enjoyed nice upside since she bought it last year.

He's been recommending this since last year's regional bank crisis when Schwab got caught in the crosshairs. It's a premier brokerage house with an amazing franchise. It was insane that shares nearly plunged in half. Last Monday, they reported a great quarter which sent shares 5% higher as the averages sank. Reported top and bottom line beats and added 1 million new accounts in Q1.

Likes their numbers, even better than the big banks. Shares have nearly doubled over the past year. Is less headline and overall risk than the big banks. Have $9.1 trillion in client assets, growth rates are 27% next year and 22% the year after that, and trades at 18x PE. 

Just bought it after the January numbers came out; cash sorting was much better than expected at $6.8 billion on their balance sheets though $9 billion was expected as clients suffer FOMO and are buying stocks. But this helps their net interest income and net interest margin.