
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab has displayed robust engagement from retail trading customers, with Daily Average Trades (DATs) increasing by approximately 30% year-over-year to about 7.4 million, indicating a strong demand for its brokerage services. The firm has also experienced significant growth in pledged asset lending, with a year-to-date increase of 49% to $23.4 billion, highlighting its expanding lending capabilities alongside a rebound in securities lending linked to a more active IPO calendar. Additionally, Schwab's capital ratios have improved, with an adjusted Tier 1 leverage ratio rising to 7.3%, reflecting financial stability and providing room for further share buybacks, while annualized seasonally adjusted revenue growth reached 5.8%, marking the strongest performance in over two years.
Bears say
The financial outlook for Charles Schwab appears negative due to declining net interest income (NII) amidst a lower interest rate environment, which is not fully accounted for by consensus estimates. Furthermore, recent trends indicate a slowdown in net new assets (NNA) flows, attributed to integration challenges following the acquisition of TD Ameritrade, with growth rates falling below 5%. Additionally, concerns surrounding macroeconomic instability, stagnant cash levels, and fluctuations in long-term interest rates pose significant downside risks that could further impact the company's financial performance.
This aggregate rating is based on analysts' research of Charles Schwab and is not a guaranteed prediction by Public.com or investment advice.
Charles Schwab (SCHW) Analyst Forecast & Price Prediction
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