Stockchase Opinions

Brian Belski Charles Schwab Corp SCHW-N BUY Jun 07, 2023

He just bought it. SCHW got it pretty hard  in March. He loves the broker dealer business. Also, SCHW has scale. So, he added when shares got hammered by the regional banking crisis. He's overweight financials.

$55.630

Stock price when the opinion was issued

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BUY ON WEAKNESS

True, anything can go wrong with banks, and he's made the wrong call on this in the past, but you can't go wrong buying it at $56.

BUY

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.

STRONG BUY

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. 

BUY

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.

BUY

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.

DON'T BUY
Hits the wall....again. Execution remains poor.

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.

PARTIAL BUY

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

BUY

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.

DON'T BUY

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.

WEAK BUY

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