Bull of the Day: Charles Schwab (SCHW)

The Charles Schwab Corp. (SCHW) just posted record revenue and earnings per share in the second quarter of 2025. This Zacks Rank #1 (Strong Buy) grew revenue by 25% in the quarter.The Charles Schwab Corp. provides financial services including wealth management, securities brokerage, banking, asset management, custody and financial advisory services to individuals and independent investment advisors.It operates a broker-dealer subsidiary, Charles Schwab & Co., Inc., which provides investment services including mutual funds, retirement planning, and financial planning.The Charles Schwab Corp. has 37.5 million active brokerage accounts, 5.6 million workplace plan participant accounts, 2.1 million banking accounts and $10.8 trillion in client assets.Schwab Beat Again in the Second Quarter of 2025On July 18, 2025, Schwab reported its second quarter 2025 results and beat the Zacks Consensus for the 10th consecutive quarter.Earnings were a record $1.14 versus the Zacks Consensus of $1.09. Net revenue rose by 25% to a record $5.9 billion.Continuing with the records, total client assets rose 14% year-over-year to a record $10.76 trillion.Core net new assets rose 31% to $80.3 billion which brought year-to-date asset gathering to $218 billion. That’s up 39% year-over-year.New brokerage account openings increased 11% year-over-year to 1.1 million, with active brokerage accounts totaling 37.5 million and total client accounts of 45.2 million.Daily average trading volume remained robust, up 38% year-over-year, at 7.6 million.Analysts are Bullish on Schwab for 2025 and 2026What wasn’t to like in the quarter? The business is operating at a high level. The analysts are bullish.9 earnings estimates were revised higher for 2025 since the earnings report, with none being cut. That has pushed up the Zacks Consensus Estimate to $4.56 from $4.43.That’s another 40.3% earnings growth as Schwab only made $3.25 last year.The analysts are also bullish on 2026. 9 earnings estimates were revised higher for next year in the last week as well, pushing up the Consensus. The Zacks Consensus is now calling for $5.35, or another 17.4% in earnings growth.This is what it looks like on the 5-year chart.Image Source: Zacks Investment ResearchSchwab Authorizes a New $20 Billion Stock Buyback PlanSchwab is shareholder friendly. On July 24, 2025, Schwab’s Board of Directors replaced its previous share repurchase authorization, which had $6.9 billion remaining, with a new authorization approving repurchases totaling $20 billion.Shares may be purchased through the open market or privately negotiated transactions based on prevailing market conditions.Schwab also pays a dividend which is currently yielding 1.1%.Schwab Shares Break Out to New All-Time Highs2025 has been a good year for Schwab shareholders, with the stock outperforming the S&P 500 year-to-date.Image Source: Zacks Investment ResearchIt also posted new all-time highs in the last week.Yet Schwab is still attractively valued. It trades with a forward price-to-earnings (P/E) ratio of 21.2. A P/E ratio under 15 is considered a value, but 21x is in line with the S&P 500. But given the big earnings growth expected this year, it has a PEG ratio, which combines the P/E ratio with growth, of just 0.94. A PEG ratio under 1.0 usually indicates a company has both growth and value. That’s a rare combination.For those investors looking for a large cap financial services company with double digit earnings growth and attractive valuations, Schwab should be on your list.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks