2024-04-14 02:12:10 ET
Summary
- Charles Schwab's stock has lagged behind the market, rising only 7% compared to the S&P 500's 11.3% increase.
- Analysts are predicting a decline in revenue and profits for Charles Schwab's first quarter of 2024.
- Despite strong growth in total client assets and new brokerage accounts, average interest-earning assets continue to decline.
Last year, one of the companies that I was most bullish on for a good chunk of time was brokerage giant The Charles Schwab Corporation ( SCHW ). After shares plummeted because of the banking crisis that began in March of 2023, I bought into the business and made the case that shares should trade meaningfully higher. Eventually, the stock did rise rather nicely. But by early January of this year, I ended up downgrading the firm on two separate occasions, eventually bringing it down from a ‘strong buy’ to a ‘hold’. Such a rating denotes my belief that shares should see upside that is more or less in line with the broader market. But since then, the stock has lagged the market to some extent. While the S&P 500 has been up 11.3% since then, shares of Charles Schwab have risen by just 7%....
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Charles Schwab: Holding Steady Even As Analysts Forecast Weakness