Charles Schwab: Getting Cheaper, But Not Cheap Enough

(9min)

Summary

  • The Charles Schwab Corporation has shown resilience, with shares pulling back only 3.4% compared to the S&P 500's 12.6% drop, but remains a 'hold' due to mixed growth.
  • Total client assets slightly declined to $10.28 trillion despite $137.3 billion in net new assets, highlighting market losses and inflows.
  • Active brokerage accounts rose significantly, but interest-earning assets and bank deposits faced challenges due to high interest rates and market conditions.
  • SCHW stock valuation has improved with a P/E multiple dropping to 23.4 and a P/B multiple to 3.24, yet not low enough for a bullish stance.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Charles Schwab logo sign at one of their offices in Houston, Texas, USA.

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With a market capitalization of $125.2 billion, The Charles Schwab Corporation (NYSE:SCHW) is a giant in the financial industry. Furthermore, the business has actually done quite well relative to the broader market in recent months. As you know by

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This article was written by

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Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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