
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab reported significant engagement among retail trading customers, with daily average trades increasing by approximately 30% year-over-year to around 7.4 million. The firm experienced robust growth in pledged asset lending, with a sequential increase of 11% and a year-to-date rise of 49%, reaching $23.4 billion, alongside improved capital ratios reflected by an adjusted Tier 1 leverage ratio of 7.3%, indicating enhanced capacity for buybacks. Additionally, Schwab achieved an annualized seasonally adjusted revenue growth of 5.8%, marking its strongest performance in over two years, complemented by a nearly 7% increase in net account growth, underscoring the firm's positive trajectory in revenue growth potential.
Bears say
The analysis indicates a negative outlook for Charles Schwab's stock due to anticipated declines in net interest income (NII) that are not fully factored into consensus forecasts, attributed to a lower interest rate environment. Additionally, the firm's new asset inflows (NNA) have shown signs of weakening, with seasonally adjusted growth rates falling below 5% in recent months, following integration challenges post-TD Ameritrade acquisition. Furthermore, various downside risks, including macroeconomic instability and possible declines in cash levels, may negatively impact the company's capital returns and overall 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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