Charles Schwab Corp (SCHW-N)

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.

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.

It got hammered when the regional bank crisis hit. Makes no sense, because Schwab there was little tie-in with those banks. They reported a great quarter last month, but has declined with the rest of the market as bond yields rise. Again, makes little sense. Shares fell 5% yesterday after announcing they close some offices, but they're still integrating TD Ameritrade. Their bond offering doesn't bother him as long as they don't sell common stock (are not).

It's been punished for being a San Francisco financial, but it's now showing momentum and it offers organic growth as it trades at a low PE.

He stuck by this during spring's banking crisis. There was zero chance of a bank run on Schwab. They reported a strong quarter last Tuesday and shares jumped 12%.

She recently added to her position. SCHW has inflows in February and March during the regional bank crisis. Trades at 13x 2024 PE.