
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab has demonstrated strong engagement among retail trading customers, achieving daily average trades (DATs) of approximately 7.4 million, reflecting a year-over-year increase of around 30%. The company has also seen impressive growth in pledged asset lending (PAL), increasing sequentially by 11% to $23.4 billion, contributing to an overall robust revenue outlook with an annualized seasonally adjusted growth rate of 5.8%, the strongest in over two years. Furthermore, improved capital ratios and net account growth of nearly 7% on an annualized basis suggest a healthy financial foundation and significant revenue growth potential as net interest income is set to benefit from repricing at market levels.
Bears say
Charles Schwab's recent earnings reports indicate a concerning trend of modest declines in net interest income (NII), suggesting that consensus forecasts are not adequately accounting for the impacts of a lower interest rate environment. Additionally, the company has experienced reduced net new asset (NNA) flows, dipping below 5% in recent months, largely due to integration challenges following the TD Ameritrade acquisition. Furthermore, potential downside risks, such as macroeconomic instability, stagnant cash levels, and rising long-term interest rates, pose significant threats to Schwab's profitability and capital return plans.
This aggregate rating is based on analysts' research of Charles Schwab and is not a guaranteed prediction by Public.com or investment advice.
Charles Schwab (SCHW) Analyst Forecast & Price Prediction
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