Charles Schwab remains a 'Buy' with 30% upside, driven by robust earnings, strong organic growth, and a favorable macro environment. SCHW's integration of Anthropic's Claude AI for advisors enhances efficiency, supporting margin expansion and reinforcing its cost leadership. Recent results highlight 22% asset growth to $13.1 trillion, record new asset inflows, and expanding margins, as higher markets and trading activity boost performance.
Charles Schwab is a hold, trading near all-time highs and just 4.6% off its peak, with a forward P/E of 16.8x. Core net new assets surged 50% year over year, managed investing flows rose 53%, and revenue grew 21%, driving robust earnings and strong upward estimate revisions. SCHW's forward multiple is 14% below its 5-year average, and its PEG ratio of 0.82 is attractive versus peers, but valuation remains high versus the sector.
Can SCHW's expansion into wealth management, banking, lending and crypto deepen client relationships and drive the next phase of growth? Let's find out.
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Volatility is likely to increase this fall. Options on Charles Schwab are a smart way to play it.
Charles Schwab (SCHW) reported earnings 30 days ago. What's next for the stock?
SCHW stock touches a new 52-week high on record asset inflows, surging margins and strong earnings momentum, despite rising expenses.
Schwab's July client assets rise 19% y/y to $13.04T, while higher net new assets and trading activity point to revenue growth.
SCHW's cash-settled Single Stock Futures offer leveraged stock exposure, but adoption, liquidity and outsized-loss risks could test the product.
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Charles Schwab SCHW, one of the leading brokerage firms in the United States, has seen its stock rise almost 6% in a month. The company's shares even hit an all-time high of $109.05 during yesterday's trading session.
Charles Schwab delivered strong fiscal 2026 second quarter earnings, with revenue up 20.9% and adjusted EPS up 42% year-over-year. Core net new assets ramped up 49% to $119.8 billion, with total client assets reaching $13.1 trillion and record trading volumes. SCHW raised 2026 revenue growth guidance to 17.5% to 18.5% as the company looks set to launch a prediction market product.