Charles Schwab: A Buy At All-Time Highs

The Asian Investor
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Summary

  • Charles Schwab delivered strong Q2 results, beating estimates on both revenue and earnings, driven by high interest rates and market volatility.
  • The brokerage saw impressive asset growth, with core net new assets up 31% year-over-year, supporting platform expansion and earnings growth.
  • Despite reaching all-time highs, Schwab trades at a reasonable valuation and is expected to deliver industry-leading EPS growth of 25% annually.
  • Risks include potential declines in market volatility and lower interest rates, but Schwab's robust profitability and asset growth justify a continued strong buy recommendation.

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Charles Schwab (NYSE:SCHW) easily surpassed consensus estimates for its second fiscal quarter on Friday, with results receiving a boost from higher interest rates, strong asset gathering, and market volatility throughout the quarter. The financial brokerage reported an impressive increase of core

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of SCHW either through stock ownership, options, or other derivatives. 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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