Latest news with #SCHW
Yahoo
10 hours ago
- Business
- Yahoo
Redburn-Atlantic Upgrades Charles Schwab (SCHW) to Neutral, Raises PT to $82
The Charles Schwab Corporation (NYSE:SCHW) is one of the . On June 9, Redburn-Atlantic upgraded SCHW to Neutral from Sell, and lifted the price target from $82 from $65. This revision indicates a shift in the firm's evaluation of Schwab's place in the American retail wealth management industry. The stock has posted a promising 20% return year-to-date, and presently it trades close to its 52-week high of $89.84. The analysts observed that Charles Schwab is a major player in the two fastest-growing divisions of the American retail wealth management sector. They pointed towards an optimistic outlook for SCHW as pressure from cash sweep issues starts to alleviate, which has enabled the company to lower high-cost financing. The $160 billion market cap company also demonstrates financial stability, given its 37 consecutive years of dividend payouts. A corporate finance professional studying a financial performance chart. Despite the rating upgrade, the analysts remain cautious about the sustainability of the cash sorting recovery, noting that the market may not completely account for possible risks. Redburn's EPS estimates for The Charles Schwab Corporation (NYSE:SCHW) are roughly 5% less than the market consensus for 2025 to 2027. Moreover, they added that potential changes to Schwab's business model, such as lowering duration and shrinking the bank, could affect the company's earnings capacity. The analysts also observed that the present challenges faced by Schwab are less pressing than they were earlier. Redburn added that the ability to pay down high-cost debt and reinvest in the securities portfolio at greater yields offers a margin of safety to Schwab's valuation. The Charles Schwab Corporation (NYSE:SCHW) is an American financial services company providing wealth management, brokerage, banking, asset management, custody, and advisory services. While we acknowledge the potential of SCHW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
3 days ago
- Business
- Forbes
Is Freeport Overvalued At $42?
Freeport-McMoRan (NYSE: FCX), has experienced an increase of approximately 12% over the past month, in contrast to the S&P500 index, which has risen about 5%. What is driving this surge? The prices of copper have been trending upwards, spurred by global economic recovery and rising demand, particularly from industries such as construction and renewable energy. As a prominent copper producer, Freeport-McMoRan is poised to benefit directly from these elevated copper prices. However, there's a catch: Freeport is trading at 33 times earnings and 9 times free cash flow. When you invert that, it results in a meager 3% earnings yield. By way of comparison, Charles Schwab (NYSE:SCHW), a firm in financial services, operates at a lower earnings multiple of 25 times and is experiencing revenue growth that is more than double. Freeport reported a revenue growth of 4.5% over the latest twelve months, whereas SCHW's revenues grew by 10.8%. So indeed, FCX is strategically positioned to capitalize on the growing demand for copper with the rise of artificial intelligence. But at $42 per share, this represents a high valuation pursuing a growth narrative that simply isn't aligned. And when the growth fails to meet expectations? That's when reality sets in. See Buy or Sell Freeport stock? During the 2008 global financial crisis, Freeport shares plummeted nearly 87%! In the initial phases of the Covid pandemic in 2020, they fell by 61%. Furthermore, in 2022, amidst soaring inflation and consumer pressures, Freeport faced another setback with a 52% drop. Historical data reveals that the stock has been more adversely affected than the index. The emergence of artificial intelligence and related technologies has driven up the demand for copper, which is crucial for data centers and electrical components. This trend fosters a positive outlook for copper producers like Freeport-McMoRan. Nevertheless, the broader landscape is less exhilarating. In the first quarter of 2025, Freeport reported a declining net income that fell from $473 million to $352 million year-over-year. Freeport's elevated valuation relies on the anticipation that discussions regarding potential tariffs on copper imports, aimed at enhancing domestic production, if enforced, will be beneficial in the long run. The company recorded net income attributable to common stock of $352 million, or $0.24 per share, a decline from $473 million, or $0.32 per share, in Q1 2024. Revenue for the quarter was $5.73 billion, down from $6.32 billion during the same period last year. Overall copper production decreased by 20% year-over-year to 868 million pounds, primarily due to a significant maintenance project at the Grasberg mine in Indonesia. Freeport has affirmed its full-year 2025 guidance, projecting copper sales of around 4.0 billion pounds, gold sales of 1.6 million ounces (exceeding earlier projections), and molybdenum sales of 88 million pounds. The company anticipates net cash costs to improve to $1.50 per pound, significantly reduced from the $2.07 per pound reported in Q1. Despite a challenging first quarter due to a temporary disruption at its Indonesian smelter, Freeport's copper sales surpassed expectations, benefiting from robust U.S. operations and increased market premiums. The company remains committed to long-term growth, with $5 billion allocated for capital expenditures in 2025 for smelter projects, mine expansions, and sustainability efforts. FCX has potential upside supported by rising copper prices, structural demand growth, operational recovery, and a robust financial position. It represents a leveraged investment in the copper megatrend. Investing in individual stocks comes with inherent risks. However, the Trefis High Quality (HQ) Portfolio, featuring a selection of 30 stocks, has consistently outperformed the S&P 500 over the past 4-year period. What accounts for this? As a collective group, HQ Portfolio stocks provided superior returns with lower risk compared to the benchmark index, resulting in a steadier performance as demonstrated in HQ Portfolio performance metrics.
Yahoo
15-05-2025
- Business
- Yahoo
Schwab Shares Gain 1.1% as Total Client Assets Rise in April
Shares of Charles Schwab SCHW gained 1.1% following the release of its monthly activity report for April 2025. The company's total client assets were $9.89 trillion, up 12% from April 2024 and stable sequentially. This was driven by the volatile markets during the assets receiving ongoing advisory services were $5.04 trillion, growing 12% from the year-ago period and relatively stable with the prior month. SCHW's core net new assets of $2.7 billion in April 2025 surged substantially from the prior-year month and declined 95% in the previous month. The decline was due to 'the impact of client tax disbursements during the month.'Schwab's average interest-earning assets of $430.9 billion rose 2% from April 2024 and 1% from the previous month. Average margin balances were $77.5 billion, up 13% from the year-ago month and down 6% from March 2025. Average bank deposit account balances totaled $84.1 billion, down 5% from the prior-year month and relatively stable with the last opened 439,000 new brokerage accounts in April 2025, up 22% from the year-earlier month and 13% Schwab's active brokerage accounts totaled 37.3 million at the end of April 2025, up 5% year over year and 1% from March 2025. Client banking accounts were 2.07 million, up 9% from the April 2024 level and 1% sequentially. The number of workplace plan participant accounts was up 5% year over year and unchanged from the March 2025 level of 5.52 million. In the past three months, Schwab shares have rallied 8.5% against the industry's fall of 4.7%. Image Source: Zacks Investment Research Currently, SCHW carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Interactive Brokers Group, Inc. IBKR released the Electronic Brokerage segment's performance metrics for April 2025. The segment deals with the clearance and settlement of trades for individual and institutional clients globally. The company reported a rise in client Daily Average Revenue Trades (DARTs) from a year total client DARTs in April were 3,818,000, representing a 63.2% increase from April 2024 and a 10% rise from March 2025. Robinhood Markets, Inc. HOOD has released the monthly operating data for April 2025. It reported a rise in equity, options and crypto DARTs from the year-ago total Platform Assets at the end of April 2025 were $232 billion, up 88% year over year and 5% from March 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
CNBC
27-04-2025
- Business
- CNBC
Top Wall Street analysts pick these stocks for robust growth potential
Global stock markets continue to be volatile, influenced by the news around wavering tariffs and trade tensions. While the Trump administration's relaxation of certain tariffs could provide some relief, the ongoing uncertainties and macro challenges might continue to weigh on investor sentiment. Given this scenario, investors can take cues from the recommendations of top analysts and pick some attractive stocks that have the ability to thrive despite short-term headwinds. With that in mind, here are three stocks favored by the Street's top pros, according to TipRanks, a platform that ranks analysts based on their past performance. First on this week's list is financial services company Charles Schwab (SCHW), which offers a wide range of brokerage, banking, and advisory services through its operating subsidiaries. On April 17, the company announced better-than-expected revenue and earnings for the first quarter of 2025. Following the upbeat results and a positive conference call, TD Cowen analyst William Katz raised his 2024-2026 earnings estimates. He also reaffirmed a buy rating on Charles Schwab stock and increased his price target to $95 from $88, saying, "SCHW remains our top pick." Katz noted that management's commentary was essentially bullish, highlighting positives like solid momentum in new business trends/demographics and operating leverage. He added that April started on a robust note for the company, thanks to strong trading, continued rise in client cash, relatively durable client margin balances, and likely solid net new assets (NNAs). The analyst believes that despite positive EPS revisions and ongoing market volatility, his model is still conservative when it comes to key drivers like NNAs/client cash. Katz sees the possibility for additional P/E multiple expansion, driven by robust/more consistent management execution, favorable organic growth dynamics, notable operating leverage, and rapid improvement in balance sheet flexibility. Katz ranks No. 323 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 10.2%. See Charles Schwab Financials on TipRanks. Next up is streaming giant Netflix (NFLX), which recently posted a significant earnings beat for the first quarter of 2025. Higher-than-expected subscriptions and ad dollars helped boost revenue and earnings in the quarter. Impressed by the Q1 print, JPMorgan analyst Doug Anmuth reiterated a buy rating on NFLX stock and raised the price target to $1,150 from $1,025. "NFLX continues to play offense in its business, while the stock remains defensive in the uncertain environment," said the analyst. Anmuth noted that on the offensive side, Netflix offered solid content in Q1 2025, with "Adolescence" and three films breaking into the streaming platform's all-time most popular list. He added that the company is strategically raising prices, including the recently announced increase in France and the upcoming hikes in the U.S. and U.K. Another positive highlighted by Anmuth was the rise in Netflix's advertising business, supported by growing user scale and monetization. On the defensive side, the analyst pointed out Netflix's subscription-based model, low churn, strong engagement and high entertainment value. Its low-priced ad tier ($7.99/month in the U.S.) also makes the service very accessible. While Netflix is not directly hit by tariffs, Anmuth noted that the company's shareholder letter and interview highlighted its commitment to international programming and production in Latin America, Asia, Europe, and the U.K. Overall, Anmuth is bullish on Netflix stock due to several positives, including the expectation of double-digit revenue growth in 2025 and 2026, a continued rise in operating margin despite growth investments, and a dominant position in the streaming space. Anmuth ranks No. 81 among more than 9,400 analysts tracked by TipRanks. His ratings have been successful 59% of the time, delivering an average return of 18.3%. See Netflix Hedge Fund Trading Activity on TipRanks. Finally, let's look at Verra Mobility (VRRM), a provider of smart transportation solutions like integrated technology to help customers manage tolls, violations, and vehicle registrations and school zone traffic cameras. Recently, Baird analyst David Koning upgraded Verra Mobility stock to buy from hold with a price target of $27. The analyst highlighted the company's solid market position. He finds a tough macro environment as a good time to upgrade the stock, because he views "high-quality companies as less pressured by investors during tougher/uncertain times." While Koning acknowledged the potential impact of macro pressures on travel volumes, he is bullish on Verra Mobility due to its strong moat. Specifically, the analyst noted the solid position of the company's Commercial unit via its rental vehicle toll transponders and the moat in its Government unit through products like speed/red light/school zone cameras. Additionally, Koning emphasized the renewal of the New York City (NYC) contract, which accounts for nearly 16% of Verra Mobility's total revenue. The analyst also thinks that states/municipalities may require more cameras during a challenging macro environment to drive more ticket revenue. Koning expects Verra's EPS estimates to be largely intact in a market where the earnings estimates of many companies could be lowered. At a valuation of 15x the 2026 EPS estimate, the analyst finds Verra stock attractive, given that it is a high-moat business. Koning ranks No. 232 among more than 9,400 analysts tracked by TipRanks. His ratings have been profitable 55% of the time, delivering an average return of 13.2%. See Verra Mobility Ownership Structure on TipRanks.
CNBC
25-04-2025
- Business
- CNBC
Sell U.S. stock rallies and buy the dip on everything else, BofA's Hartnett says
Don't be fooled by this week's bounce in the S & P 500 . Selling in U.S. stocks is not over, and investors should stay defensive as trade worries persist, according to Bank of America's Michael Hartnett. "We remain [first half] buyers of dips in bonds, international & gold, sellers of SPX/US$ rallies," Hartnett, the bank's chief investment strategist, said in his latest "Flow Show" note. Hartnett's comments come as U.S. stocks are about to wrap up a rare positive week. The S & P 500 is ahead 3.8% heading into Friday's open, while the Nasdaq and Dow Jones Industrial Average have gained 5.4% and 2.4%, respectively, this week. Gold , which recently soared to record highs, is down slightly for the week, while the U.S. 10-year Treasury note yield is about flat over that that time (yields move inversely to prices). The U.S. dollar is on track for a small weekly advance. Investors have been shunning U.S. stocks and the dollar and moving into gold lately as uncertainty around global trade increases and the outlook for stagflation in the U.S. grows. China said Thursday that no tariff talks have been held yet with the U.S., despite the White House appearing to soften its stance on U.S.-China trade. "here's been a "remarkable flip from 'U.S. exceptionalism' hubris to 'U.S. repudiation' … In contrast, Spanish stocks +25% YTD ($-terms), highest since Euro debt crisis humiliation, as reallocation of global capital from U.S. begins (e.g. Latin American capital now heading to Madrid not Miami)," wrote Hartnett. The "weaker U.S. dollar will play out either slowly with lower yields or quickly with higher yields, it's brutally flagged by soaring gold price, and while 'reports of the death of the Magnificent 7 have been greatly exaggerated' (they remain central to AI theme), weak U.S. dollar theme favors increased global asset allocation to commodities," he added. Elsewhere Friday morning on Wall Street, Goldman Sachs upgraded Charles Schwab to buy from neutral. "In an environment that remains highly uncertain, SCHW offers one of the best EPS growth outlooks in our space," the bank said in a note to clients. "While many pieces of the SCHW bull case have been in place for a while, we think the stock's recent results create enough evidence to underwrite much faster EPS growth." Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
