
NYSE:SCHW
This summary was created by AI, based on 5 opinions in the last 12 months.
Experts offer a mixed yet mostly optimistic view on Charles Schwab Corp (SCHW-N) ahead of its earnings report. Many believe the company is well-managed and that its strong performance will likely continue, highlighting its current valuation as notably attractive at 16x PE—its lowest in years. Concerns exist regarding the short sellers affecting trading dynamics, with a caution indicated especially at the open of trading. Furthermore, the anticipated generational wealth transfer could provide future benefits for the company. Overall, while there are risks linked with market volatility and short-selling pressure, many experts view SCHW-N as a compelling purchase amidst these uncertainties.
Retail and private investors are becoming more engaged with markets. There was $700 trillion in wealth created last year in the US. This company has about 10 million accounts, and are opening 100,000 accounts a month. 1% growth a month is not so bad. Their asset management and advisory business is growing very nicely. They have about $3 trillion in clients’ assets and hold a tremendous amount of cash. As rates go up, the margins they make is very, very good. Dividend yield of 0.6%. (Analysts' price target is $50.)
The chart shows this is still going up, but something that is still a little concerning is that it has kind of gone up parabolically in the last little while. At worst, he thinks it is going to want to pause. A really good space to be in. He would look for it to go sideways before it continues on. This is one he would hang onto. It's part of the pro-growth theme.