Is Charles Schwab Stock (SCHW) a Buy? TipRanks AI Analyst Says Yes
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Financial services firm Charles Schwab attracts strong interest from investors and Wall Street analysts. Notably, TipRanks' A.I. Analyst also gave SCHW a positive rating, signaling confidence in the stock's potential.
The tool assigns an Outperform rating to Charles Schwab stock with a solid score of 74. Meanwhile, the A.I. analyst assigns a price target of $107 to SCHW stock, implying an upside of over 11% from the current levels.
For context, TipRanks' A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock's potential.
Strong Earnings
SCHW's AI-driven score is powered by strong earnings growth. In addition, our AI egghead said that favorable trends should enable the company to continue reducing supplemental funding, which could increase capital return. In addition, better asset management and administrative fees and expenses contribute to a positive financial outlook.
As you can see above, it is not all smooth sailing for the SCHW stock, with our AI analyst highlighting issues with the company's lower organic growth trajectory. Net new assets are another concern.
On the other hand, technical indicators for the stock look reasonably positive – see below.
What Do Other Analysts Say?
Truist analyst David Smith recently raised the firm's price target on Charles Schwab to $112 from $107 and kept a Buy rating on the shares. The company's monthly assets data was 'a hot one' as net new assets growth accelerated back above 5% and was nearly 6% on a seasonally adjusted basis 'by our math accounting for a typical July headwind – the strongest growth in more than 2 years,' the analyst said.
Jeff Schmitt of William Blair has a Buy rating due to a combination of factors indicating positive momentum for Charles Schwab. The company's underlying fundamentals are showing signs of improvement, Schmitt said, with organic growth on the rise. Additionally, the current market conditions are favorable, leading to increased trading activity and higher margin balances, which are crucial for enhancing spread income.
These positive trends are expected to allow Charles Schwab to reduce its reliance on supplemental funding, thereby boosting the net yield and providing a strong impetus for earnings growth.
Is SCHW a Good Stock to Buy Now?
On TipRanks, SCHW has a Strong Buy consensus based on 14 Buy, 2 Hold and 1 Sell ratings. Its highest price target is $131. SCHW stock's consensus price target is $105.07, implying an 8.93% upside.
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