Charles Schwab and Dow have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – July 28, 2025 – Zacks Equity Research shares The Charles Schwab Corp. SCHW as the Bull of the Day and Dow Inc. DOW as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global Inc. COIN or Circle Internet Group CRCL.Here is a synopsis of all four stocks:Bull of the Day:The Charles Schwab Corp. 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.Schwab 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.It 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.Bear of the Day:Dow Inc. is struggling with uncertainty around tariffs and challenging industry conditions. This Zacks Rank #5 (Strong Sell) recently cut its quarterly dividend by 50%.Dow is a materials science company, and has customers in areas such as packaging, infrastructure, mobility and consumer applications. It operates manufacturing facilities in 30 countries.Dow Missed on Q2 Earnings By 282%On July 24, 2025, Dow reported its second quarter results and missed the Zacks Consensus by $0.31. Earnings were a loss of $0.42 compared to the Zacks Consensus of a loss of $0.11. That's a miss of 282%.It has missed 2 out of the last 4 quarters.Net sales fell 7% to $10.1 billion with declines in all operating segments. Sequentially, net sales were down 3%.Volumes were also down 1%, as gains in the US and Canada were more than offset by declines in India, the Middle East, Africa and Europe.Local price was down 7% year-over-year with declines in all regions and operating segments.Cash from operating activities was negative $470 million, and down $1.3 billion year-over-year, led by lower earnings from margin compression.Dow Cuts the Dividend by 50%On July 24, 2025, on the same day as it reported Q2 earnings, Dow also announced its Board of Directors had declared a quarterly dividend of $0.35 per share.That was a dividend cut of 50% in response to the prolonged industry downturn.Dow said the cut would enhance financial flexibility amidst the continuing challenging macroeconomic environment.If that holds annually, it would be $1.40 a share and would still be yielding 5.5%.It is still the 456th consecutive dividend it has paid since 1912. That's an impressive record, through 2 world wars, a Great Depression and Great Recession and other economic and geopolitical challenges.Analysts Are Bearish on 2025 and 2026It should not be a surprise, with the big earnings miss and the dividend cut, that the analysts are bearish on Dow. Estimates had already been cut earlier this year, but they've been cut again.1 earnings estimate was cut in the last 7 days, and 3 in the last 30 days, for 2025. That has pushed down the 2025 Zacks Consensus to $0.24 from $0.38 just a month ago.That's an earnings decline in 2025 of 86% as the company made $1.71 last year.Shares of Dow Sink Over the Last YearThe shares have been weak for some time. Dow has sunk to 1-year, and also, 5-year, lows.With earnings sinking, the stock is not cheap on either a price-to-earnings (P/E) basis or on a PEG ratio basis.It trades with a forward P/E of 107 and has a PEG ratio, which measures the P/E divided by growth, of 11.3. A P/E under 15 and a PEG ratio under 1.0 indicate value.This has been a tough year for Dow. Investors might want to wait on the sidelines for a sign of a turnaround in the earnings before jumping in.Additional content:Coinbase vs. Circle: Which Stablecoin Powerhouse Is the Safer Bet?Retail access to cryptocurrencies is progressing steadily as platforms improve onboarding, enhance user experiences, and align more closely with regulatory expectations. Fintechs and exchanges are increasingly integrating crypto wallets and trading capabilities into their apps, making it easier for everyday users to manage digital assets. In this evolving landscape, the question arises: which company is better positioned for long-term growth — Coinbase Global Inc. or Circle Internet Group?Stablecoins are emerging as a crucial link between traditional finance and the crypto world, playing a key role in the development of next-generation digital financial infrastructure. Major banks are even beginning to explore their own stablecoin initiatives. As tokenization, stablecoins and decentralized finance (DeFi) continue to evolve, retail users will gain access to a growing suite of user-friendly and functional crypto services that extend far beyond basic asset trading.Yet, cyber threats remain a challenge.But as an investment option, which stock is more attractive? Let's closely look at the fundamentals of these stocks.Factors to Consider for COINCoinbase, the largest regulated cryptocurrency exchange in the United States, is well-positioned to capitalize on increased market volatility and rising digital asset valuations. The platform is likely to benefit from President Trump's supportive stance on crypto and his push for regulatory clarity. With 83% of its revenues generated domestically, Coinbase is tightly aligned with a U.S. market that is increasingly viewed as a global leader in crypto innovation.The company is actively advancing real-world crypto adoption through infrastructure initiatives like Base — its cost-effective Layer 2 scaling solution — and a heightened focus on stablecoins. These efforts support Coinbase's broader strategy to become the go-to platform for businesses adopting digital assets. The recent launch of the Base App, which replaces Coinbase Wallet, expands Coinbase's role beyond trading by reaching a wider consumer base. The app aims to drive deeper engagement in the on-chain ecosystem while unlocking new monetization opportunities.Coinbase is also pushing stablecoins into the mainstream with Coinbase Payments, an alternative to traditional card processing fees that enables stablecoin-based online transactions. The company has further incentivized adoption by waiving fees on PayPal's stablecoin transactions. These moves bolster Coinbase's growing subscription and services segment, with stablecoin income emerging as a key revenue driver.From a financial standpoint, Coinbase ended 2024 with $9.3 billion in U.S. dollar resources — including cash, cash equivalents, and USDC — reflecting a $3.8 billion increase year over year. The company also strengthened its balance sheet by lowering its debt load, resulting in healthier leverage and interest coverage ratios.Nonetheless, elevated transaction and operating expenses continue to weigh on margins. Coinbase remains heavily exposed to volatility in major cryptocurrencies such as Bitcoin and Ethereum. A sharp decline in asset prices could hurt earnings, reduce crypto holdings' value, and strain liquidity and future cash flows.Factors to Consider for CRCLCircle Internet Group will play a pivotal role in the global evolution of digital finance, offering investors direct exposure to the fast-growing world of stablecoins and blockchain-enabled payments. Circle completed its IPO last month and started trading on June 5, 2025 on NYSE.With more than $25 billion USDC, the U.S. dollar-backed stablecoins, in circulation and widespread adoption across major blockchains, wallets and exchanges, Circle benefits from strong network effects and growing institutional interest in tokenized dollars.Circle facilitates secure, low-cost, and real-time value transfers across both decentralized and traditional financial systems and has thus carved out significant competitive advantages. Its commitment to regulatory clarity—through partnerships with banks and compliance with U.S. and global standards—sets it apart from less regulated crypto-native competitors. Collaborations with leading institutions such as BlackRock, Visa and Fiserv underscore Circle's vision of USDC becoming a core component of digital payments, cross-border remittances and embedded finance applications.Circle's business model is primarily driven by interest income on USDC reserves, which are predominantly invested in U.S. Treasuries. This reliable income stream is bolstered by an expanding portfolio of products, including Circle Mint, programmable wallets and blockchain-based treasury management tools. With demand for digital dollars accelerating, Circle's financial model has become increasingly robust and scalable. Moreover, the company's initiatives in real-world asset tokenization and programmable finance are opening up new growth opportunities, particularly in B2B payments and institutional-grade digital asset solutions.CRCL stock has experienced significant volatility since its IPO.Estimates for COIN and CRCLThe Zacks Consensus Estimate for COIN's 2026 revenues and EPS implies an 8% and 11.4% year-over-year increase, respectively. EPS estimates have, however, moved south over the past 30 days.The Zacks Consensus Estimate for CRCL's 2026 revenues implies a 20.2% increase but the same for EPS suggests a year-over-year decrease of 3.9%. EPS estimates have moved south over the past 30 days.Price Performance of COIN and CRCL?COIN shares have gained 5% in a month, while CRCL shares have lost 9.9% in the same time.ConclusionCoinbase benefits from a well-diversified revenue base that includes trading fees, staking, custodial services, and derivatives, all bolstered by growing institutional demand. Its inclusion in the S&P 500, the acquisition of Deribit and significant involvement in USDC custody strengthen its regulatory standing and support its long-term strategic trajectory.On the other hand, Circle's efforts to expand USDC's utility in tokenized payments and real-world asset applications are encouraging, but the company operates with a narrower focus and more limited scale. Its revenues are predominantly derived from interest earned on USDC reserves, leaving it highly exposed to fluctuations in macroeconomic factors like interest rates.Though both COIN and CRCL carry a Zacks Rank #3 (Hold), at present, COIN seems a safer option.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.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 Report Dow Inc. (DOW): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Circle Internet Group, Inc. (CRCL): 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