The Charles Schwab Corporation (SCHW), based in Westlake, Texas, is a savings and loan holding company that offers a wide range of financial services including wealth and asset management, securities brokerage, banking, trading and research, custody, and financial advisory services. With a market capitalization of $184.7 billion, the company has been performing well in the market.
In the past year, SCHW’s shares have outperformed the broader market, with a 24.3% increase compared to the S&P 500 Index’s 14.3% rally. Year-to-date, SCHW stock is up 4%, surpassing the SPX’s 1.4% rise. Additionally, when compared to the SPDR S&P Capital Markets ETF (KCE), SCHW has also shown strong performance, with returns matching the ETF’s gains.
Following the release of its Q4 results on Jan. 21, SCHW saw a marginal increase in its stock price. The company reported revenue of $6.3 billion, slightly below analyst estimates, while its adjusted EPS of $1.39 met expectations. Looking ahead to the current fiscal year, analysts anticipate SCHW’s EPS to grow by 18.9% to $5.79 on a diluted basis. The company has a history of beating consensus estimates in the last four quarters.
Of the 22 analysts covering SCHW stock, the consensus is a “Moderate Buy,” with 13 “Strong Buy” ratings, three “Moderate Buys,” five “Holds,” and one “Moderate Sell.” This represents a slightly less bearish outlook compared to the previous month, with one analyst suggesting a “Strong Sell.”
On Jan. 30, William Katz from TD Cowen reiterated a “Buy” rating on SCHW with a price target of $138, implying a potential upside of 32.8% from current levels. The mean price target of $121.26 indicates a 16.7% premium to SCHW’s current price, while the Street-high price target of $148 suggests an ambitious upside potential of 42.4%.
In conclusion, Charles Schwab Corporation continues to show strong performance in the financial services sector, with analysts maintaining a positive outlook on the stock’s future growth potential.
On the date of publication, Neha Panjwani 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. This article was originally published on Barchart.com
