The Charles Schwab Corporation (SCHW) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Charles Schwab (SCHW) presents strong Q3 results with 27% revenue and 70% earnings growth, robust client asset inflows, record new accounts, and a 20% price rally over recent weeks supported by technical strength, positioning it well for continued short-term gains in capital markets and digital asset services.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Large cash buffer ⢠Improving margins ⢠Low asset turnover Schwab shows strong liquidity and improving margins with reduced leverage, but weak asset turnover, deposit reliance, and quarterly cash/earnings volatility raise caution.
Price Behavior
Key Price Behavior Insights: ⢠Recovering trend ⢠Overhead resistance ⢠Defended support Support Level: $95â$96 Resistance Level: $102â$104 Over the last month SCHW recovered from about $93.82 to above $101 but faces clear overhead resistance near $102â$104 while finding support around $95â$96.
Sentiment & News
Key News Insights: ⢠Platform upgrades ⢠Earnings beat ⢠Forge acquisition Charles Schwab's platform upgrades, strong Q3 earnings, Forge acquisition and institutional buying bolster growth and stock momentum despite near-term cost pressures.
AI Summary
Schwab has shifted from a rateâsensitive brokerage to a higherâmargin, scaleâdriven distribution and technology platformâmeaning balanceâsheet remixing, product expansion (Forge, crypto, thinkorswim) and buybacks can materially blunt NII cyclicality and support durable margins if execution holds. The key action: monitor sustained organic NNA growth, margin stability, and successful integration/monetization of new products as the primary drivers that will validate multiple expansion or, conversely, expose downside if market activity and rates weaken faster than remediation.
Description
The Charles Schwab Corporation is a diversified financial services firm that provides brokerage, wealth management, asset management, custody, banking and advisory services through two reporting units: Investor Services for retail clients and Advisor Services for registered investment advisors and institutions. Its offerings span trading and clearing, cash management and lending, mutual funds and ETFs, managed portfolios and customized advice, plus trust and mortgage products, delivered through a network of domestic branches and international offices. The company was incorporated in 1971 and is headquartered in Westlake, Texas.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 23 | Dec 30 | SCHW | The Charles Schwab Corporation | Charles Schwab (SCHW) presents strong Q3 results with 27% revenue and 70% earnings growth, robust client asset inflows, record new accounts, and a 20% price rally over recent weeks supported by technical strength, positioning it well for continued short-term gains in capital markets and digital asset services. | Closed | -0.6% |