Group 1 - The Schwab U.S. Broad Market ETF (SCHB) closely resembles the S&P 500 in both composition and performance, leading to potential redundancy in investment strategy [1] - The analysis emphasizes the importance of understanding the ETF's structure to evaluate its investment potential effectively [1] Group 2 - The author has extensive experience in quantitative research, financial modeling, and risk management, focusing on equity valuation and market trends [1] - The investment research approach combines rigorous risk management with a long-term perspective on value creation, particularly interested in macroeconomic trends and corporate earnings [1]

Core Insights - The Charles Schwab Corporation (SCHW) shares have increased by 31.9% year-to-date, outperforming the S&P 500 Index's 8.5% growth and the industry's 20.4% rise, but lagging behind peers Robinhood Markets (HOOD) and Interactive Brokers (IBKR) [1][8] Performance Overview - Schwab has benefited from increased market volatility, leading to a year-over-year rise in trading revenues in the first half of 2025 due to higher client trading volume [3] - The company's performance has been supported by strong asset gathering, sustained client engagement, equity market appreciation, and effective expense management [4] Growth Factors - Improving Net Interest Margin (NIM): NIM increased to 2.59% in the first half of 2025 from 2.03% in the prior year, aided by a reduction in high-cost bank supplemental funding, which fell 70% to $27.7 billion from a peak of $97.1 billion in May 2023 [5][6][10] - Client assets have surged, with total managed investing solutions revenues growing at a compound annual growth rate (CAGR) of 12.2% from 2019 to 2024, and total client assets growing at a CAGR of 20.1% during the same period [11][12] - Strategic acquisitions, including TD Ameritrade, have strengthened Schwab's market position and diversified revenue streams [13] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Schwab's 2025 revenues is $23.41 billion, indicating a year-over-year increase of 19.4% [14] - Earnings estimates for 2025 and 2026 have been revised upward by 4.6% and 4.7%, respectively, with projected earnings of $4.59 per share for 2025, reflecting a growth rate of 41.2% [16] Valuation and Returns - Schwab's current trailing 12-month price/book (P/B) ratio is 4.40, above the industry average of 2.08, but lower than Robinhood's 12.51 and Interactive Brokers' 6.04 [19][22] - The company has a return on equity (ROE) of 19.3%, exceeding the industry average of 11.89%, indicating effective utilization of shareholder funds [23] Shareholder Returns - Schwab has consistently increased capital distributions, including an 8% hike in the quarterly dividend to 27 cents per share in January 2025 and a $20 billion share repurchase plan announced in July 2025 [26]

Core Viewpoint - The Charles Schwab Corporation (SCHW) has significantly reduced its high-cost supplemental funding balances, leading to improved net interest revenues (NIR) and net interest margin (NIM) in 2025 [1][2][3]. Group 1: Financial Performance - By the end of June 2025, SCHW's supplemental funding balance decreased by 70% to $27.7 billion from a peak of $97.1 billion in May 2023 [1]. - In the first half of 2025, SCHW's NIR increased by 25.9% year over year to $5.53 billion, aided by lower interest expenses and growth in bank lending [2]. - The NIM for SCHW rose to 2.59% in the first half of 2025, up from 2.03% in the same period the previous year [2]. Group 2: Future Projections - SCHW's NIR is projected to increase by 24.7% year over year in 2025, driven by the continued reduction in supplemental funding balances and higher interest rates [3]. - Management anticipates NIM to be between 2.65% and 2.75% by the end of 2025, with expectations for fourth-quarter NIM to approach 2.80% [3]. Group 3: Peer Comparison - Robinhood Markets, Inc. (HOOD) reported a 19.4% increase in NIR year over year in 2024 and a 119% increase in 2023, with a 20% rise in the first half of 2025 to $647 million [4]. - Interactive Brokers (IBKR) saw a 12.7% increase in net interest income year over year in 2024 and a 67.5% increase in 2023, with a 5.9% rise to $1.63 billion in the first half of 2025 [5]. Group 4: Stock Performance and Valuation - SCHW's shares have increased by 31.2% this year, outperforming the industry growth of 20.7% [6]. - SCHW trades at a forward price-to-earnings (P/E) ratio of 19.10, which is significantly higher than the industry average of 14.43 [8]. - The Zacks Consensus Estimate indicates earnings growth of 41.2% for 2025 and 17.7% for 2026, with upward revisions in earnings estimates over the past 30 days [9].

Core Viewpoint - The article emphasizes the importance of dividend stocks as a reliable income source amid economic uncertainty, highlighting the Schwab U.S. Dividend Equity ETF (SCHD) as a top choice for investors looking to add dividend-paying investments to their portfolios [1][9][11]. Summary by Sections Dividend ETFs Overview - Not all dividend ETFs are created equal, with significant differences in performance and underlying indices [3][4]. - The Vanguard High Dividend Yield ETF (VYM) and SPDR S&P Dividend ETF (SDY) both yield just under 2.6%, but VYM has outperformed SDY by approximately 40% over the past five years [4]. - The Schwab U.S. Dividend Equity ETF (SCHD) has a trailing yield of 3.9%, but has underperformed compared to VYM and SDY [5]. Performance Analysis - The Vanguard Dividend Appreciation ETF (VIG) has been the best performer over the past five years, focusing on consistent dividend growth with a trailing yield of 1.65% [7][8]. - SCHD is highlighted as a smart investment choice due to its potential for reversal in performance trends favoring value stocks over growth stocks [11][12]. Market Conditions and Predictions - Current market conditions are shifting from a growth stock environment to one favoring value stocks, which benefits dividend-paying stocks [11][14]. - Economic factors such as inflation, trade uncertainties, and labor issues are contributing to predictions of below-average returns for the U.S. stock market, with expected annual growth rates between 3.3% and 6% over the next decade [17][18]. Investment Strategy - Investors are encouraged to consider reallocating their portfolios towards dividend-paying value investments, as cash dividends may become increasingly valuable in a stagnant market [16][18]. - A gradual shift towards favoring dividends and value stocks is anticipated, suggesting that proactive adjustments to investment strategies may be beneficial [19][20].

Part I - Financial Information [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=36&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for The Charles Schwab Corporation [Condensed Consolidated Statements of Income](index=36&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported significant year-over-year growth in net income for both the second quarter and first six months of 2025 Key Income Statement Figures (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total net revenues** | $5,851 million | $4,690 million | $11,450 million | $9,430 million | | **Net interest revenue** | $2,822 million | $2,158 million | $5,528 million | $4,391 million | | **Total expenses excluding interest** | $3,048 million | $2,943 million | $6,192 million | $5,885 million | | **Net Income** | $2,126 million | $1,332 million | $4,035 million | $2,694 million | | **Diluted Earnings Per Share** | $1.08 | $0.66 | $2.07 | $1.34 | [Condensed Consolidated Statements of Comprehensive Income](index=37&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2025 increased significantly due to higher net income and positive changes in other comprehensive income Comprehensive Income Summary (Unaudited) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | **Net Income** | $2,126 million | $4,035 million | | **Other comprehensive income (loss), net of tax** | $1,030 million | $2,257 million | | **Comprehensive Income** | $3,156 million | $6,292 million | [Condensed Consolidated Balance Sheets](index=38&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased due to reduced bank deposits and borrowings, while stockholders' equity increased from retained earnings and improved AOCI Key Balance Sheet Figures (Unaudited) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total assets** | $458,936 million | $479,843 million | | **Available for sale securities** | $67,612 million | $82,994 million | | **Held to maturity securities** | $139,684 million | $146,453 million | | **Bank loans — net** | $50,405 million | $45,215 million | | **Total liabilities** | $409,485 million | $431,468 million | | **Bank deposits** | $233,058 million | $259,121 million | | **Total stockholders' equity** | $49,451 million | $48,375 million | [Condensed Consolidated Statements of Stockholders' Equity](index=39&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased due to net income and AOCI, partially offset by dividends, stock repurchases, and preferred stock redemption - Key equity changes in the first six months of 2025 include the repurchase of all remaining nonvoting common stock from TD Bank for **$1.5 billion** and an additional **$351 million** in common stock repurchases[120](index=120&type=chunk)[142](index=142&type=chunk) - The company redeemed its Series G preferred stock for **$2.5 billion** on June 2, 2025[108](index=108&type=chunk)[142](index=142&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=40&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating and investing activities was offset by significant cash used in financing activities, leading to a net decrease in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (Unaudited) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by (used for) operating activities** | $9,536 million | ($5,601) million | | **Net cash provided by (used for) investing activities** | $19,546 million | $19,181 million | | **Net cash provided by (used for) financing activities** | ($39,027) million | ($40,938) million | | **Increase (Decrease) in Cash and Cash Equivalents** | ($9,945) million | ($27,358) million | [Notes to Condensed Consolidated Financial Statements](index=43&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting policies, financial instruments, debt, and regulatory capital, highlighting preferred stock redemption and share repurchases - On June 2, 2025, the company redeemed all outstanding Series G preferred stock for **$2.5 billion**[108](index=108&type=chunk)[244](index=244&type=chunk) - In February 2025, the company repurchased all remaining **19.2 million** shares of nonvoting common stock from TD Group US Holdings LLC for **$1.5 billion**. An additional **3.9 million** common shares were repurchased for **$351 million** in Q2 2025[239](index=239&type=chunk)[241](index=241&type=chunk) - As of June 30, 2025, the company and its banking subsidiaries met all respective capital requirements and were considered **well capitalized**[254](index=254&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q2 and H1 2025, highlighting strong revenue and net income growth [Introduction](index=3&type=section&id=Introduction) The Charles Schwab Corporation provides wealth management, brokerage, banking, and asset management services through its subsidiaries - Schwab's principal business subsidiaries include Charles Schwab & Co., Inc. (broker-dealer), Charles Schwab Bank, SSB (banking), and Charles Schwab Investment Management, Inc. (asset management)[14](index=14&type=chunk) - The company serves clients through **two primary segments**: Investor Services and Advisor Services[9](index=9&type=chunk) - With **$10.76 trillion** in client assets, management sees substantial growth opportunity in the estimated **$70+ trillion** U.S. investable wealth market[11](index=11&type=chunk) [Overview](index=7&type=section&id=Overview) Schwab's strong H1 2025 performance saw significant revenue and net income growth, driven by asset gathering and reduced funding costs Q2 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total net revenues** | $5,851 M | $4,690 M | 25% | | **Net income** | $2,126 M | $1,332 M | 60% | | **Diluted EPS** | $1.08 | $0.66 | 64% | | **Core net new client assets** | $80.3 B | $61.2 B | 31% | H1 2025 Financial Highlights (vs. H1 2024) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total net revenues** | $11,450 M | $9,430 M | 21% | | **Net income** | $4,035 M | $2,694 M | 50% | | **Diluted EPS** | $2.07 | $1.34 | 54% | | **Core net new client assets** | $218.0 B | $156.8 B | 39% | - The company reduced total bank supplemental funding by **$22.2 billion (44%)** in the first six months of 2025, with **$27.7 billion** remaining at June 30[25](index=25&type=chunk) - Significant capital actions in H1 2025 included repurchasing **$1.5 billion** of nonvoting common stock from TD Bank, increasing the common dividend by **8%**, redeeming **$2.5 billion** of Series G preferred stock, and repurchasing an additional **$351 million** of common stock[27](index=27&type=chunk) [Current Regulatory and Other Developments](index=10&type=section&id=Current%20Regulatory%20and%20Other%20Developments) Recent regulatory developments include SEC and FDIC rule withdrawals, with ongoing monitoring of other pending matters - The SEC withdrew its December 2022 equity market structure rule proposals, 'Order Competition Rule' and 'Regulation Best Execution', on June 12, 2025[28](index=28&type=chunk) - The FDIC withdrew its July 2024 proposal related to the brokered deposits framework on March 3, 2025[29](index=29&type=chunk) - The company continues to monitor pending regulatory matters, including the DOL's final rule on the definition of 'fiduciary', FDIC special assessments, and proposed rulemaking on long-term debt and regulatory capital (Basel III endgame)[30](index=30&type=chunk) [Results of Operations](index=11&type=section&id=Results%20of%20Operations) The company's operations showed strong year-over-year revenue growth, primarily from net interest revenue and asset management fees Revenue Breakdown - Q2 2025 vs Q2 2024 | Revenue Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net interest revenue** | $2,822 M | $2,158 M | 31% | | **Asset management & admin fees** | $1,570 M | $1,383 M | 14% | | **Trading revenue** | $952 M | $777 M | 23% | | **Bank deposit account fees** | $247 M | $153 M | 61% | | **Total net revenues** | $5,851 M | $4,690 M | 25% | Expense Breakdown - Q2 2025 vs Q2 2024 | Expense Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Compensation and benefits** | $1,536 M | $1,450 M | 6% | | **Professional services** | $291 M | $259 M | 12% | | **Depreciation and amortization** | $215 M | $233 M | (8)% | | **Total expenses excluding interest** | $3,048 M | $2,943 M | 4% | [Risk Management](index=22&type=section&id=Risk%20Management) Schwab manages market, liquidity, and credit risks through policies on interest rate sensitivity, maintaining strong funding, and robust regulatory liquidity ratios - A hypothetical gradual **100 basis point** increase in interest rates is simulated to increase net interest revenue by **4.1%** over the next 12 months, while a **100 basis point** decrease would lower it by **4.0%**[79](index=79&type=chunk) - The company's primary source of funds is cash from client activity (bank deposits and brokerage cash). Supplemental funding includes FHLB borrowings, repurchase agreements, and commercial paper[89](index=89&type=chunk) Regulatory Liquidity Ratios (Average for Q2 2025) | Ratio | Q2 2025 Average | | :--- | :--- | | **Liquidity Coverage Ratio (LCR)** | 143% | | **Net Stable Funding Ratio (NSFR)** | 132% | [Capital Management](index=30&type=section&id=Capital%20Management) Schwab manages capital to support strategy, meet regulatory requirements, and return excess capital, maintaining a well-capitalized status Key Capital Ratios (Consolidated) | Ratio | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Common Equity Tier 1 Capital Ratio** | 33.0% | 31.7% | | **Tier 1 Capital Ratio** | 38.9% | 39.8% | | **Tier 1 Leverage Ratio** | 9.8% | 9.9% | | **Adjusted Tier 1 Leverage Ratio (Non-GAAP)** | 7.2% | 6.8% | - The Board of Directors increased the quarterly cash dividend by **8%** to **$0.27** per common share, effective January 29, 2025[117](index=117&type=chunk) - In Q1 2025, the company repurchased **$1.5 billion** of nonvoting common stock from TD Bank. In Q2 2025, it repurchased an additional **$351 million** of common stock. In July 2025, a new **$20.0 billion** share repurchase authorization was approved, replacing the previous one[120](index=120&type=chunk)[122](index=122&type=chunk) [Non-GAAP Financial Measures](index=32&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles non-GAAP financial measures used by management for clearer operational performance insights Reconciliation of GAAP to Non-GAAP EPS (Diluted) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | $1.08 | $2.07 | | **Adjustments (Amortization, etc.)** | $0.06 | $0.10 | | **Adjusted Diluted EPS (Non-GAAP)** | $1.14 | $2.17 | Reconciliation of GAAP to Non-GAAP Capital Ratio (Consolidated) | Metric | June 30, 2025 | | :--- | :--- | | **Tier 1 Leverage Ratio (GAAP)** | 9.8% | | **AOCI Adjustment** | (2.6)% | | **Adjusted Tier 1 Leverage Ratio (Non-GAAP)** | 7.2% | - Management uses non-GAAP measures like Adjusted Diluted EPS and ROTCE as components for employee and executive incentive compensation[129](index=129&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Disclosures about market risk are located in the Risk Management section of the MD&A - The disclosures about market risk are located in the Risk Management section of the MD&A[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the quarter[264](index=264&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[265](index=265&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including a pending settlement for the Corrente Antitrust Litigation, is detailed in Note 10 - For details on legal proceedings, the report refers to Note 10 of the Condensed Consolidated Financial Statements[266](index=266&type=chunk) - The Corrente Antitrust Litigation has a proposed settlement pending court approval, which involves non-monetary undertakings and an **immaterial payment** for plaintiffs' attorneys' fees[206](index=206&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the company's risk factors during the first six months of 2025 - There were **no material changes** to the company's risk factors during the first six months of 2025[267](index=267&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details on stock repurchase activities, including Q2 2025 repurchases and a new $20 billion authorization approved in July 2025 - On July 24, 2025, the Board of Directors approved a new share repurchase authorization of up to **$20.0 billion**, replacing the previous program[268](index=268&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Month | Shares Purchased (thousands) | Average Price Paid per Share | | :--- | :--- | :--- | | **April** | — | — | | **May** | — | — | | **June** | 3,950 | $88.75 | [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[271](index=271&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to The Charles Schwab Corporation - Not applicable[272](index=272&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) Jonathan S. Beatty adopted a Rule 10b5-1 trading plan in May 2025 for the potential sale of common stock - Jonathan S. Beatty, Managing Director and Head of Advisor Services, adopted a Rule 10b5-1 trading plan on May 28, 2025, for the potential sale of up to **13,216 shares**[273](index=273&type=chunk) [Item 6. Exhibits](index=79&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including SOX certifications and Inline XBRL data files - Exhibits filed include certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files[276](index=276&type=chunk) Signature - The report was signed on August 8, 2025, by Michael Verdeschi, Managing Director and Chief Financial Officer[280](index=280&type=chunk)

Market Trends & Economic Outlook - Major indices are tracking to close the week higher, with the S&P and NASDAQ pacing for their third positive week in four, and the Dow on course for its second positive week in three [1] - The market has largely processed economic data, driven by the resilience of the economy and consumer spending [2] - There's a growing possibility of stagflation, with potential inflation increases alongside economic deceleration and signs of a softening labor market [3] - Inflation measures show signs of fatigue, with goods prices potentially driving inflation higher, increasing the likelihood of a stagflation scenario [4] - The market focuses on data trends, such as the direction of the labor market and unemployment rate, rather than specific data points [6] Investment Strategies & Sector Performance - Companies with strong profit margins and solid free cash flow yields are performing well, supported by capital expenditure and profit margin expansion [7] - Sectors not investing in AI or reducing labor face margin squeeze due to potential supply chain price increases, leading to negative outlooks [8][9] - International markets, particularly Europe, are showing strength due to stronger economies and a weaker dollar, presenting diversification opportunities [11][12] - MSCI World Index XUS is up about 18% this year, compared to about 8% for the S&P 500, signaling a rebalancing of capital flows [10] Data Quality & Market Reaction - Uncertainty in data is inherent, with revisions being common due to the dynamic nature of information gathering [5] - The market is adept at understanding data ranges and focusing on trends rather than specific data points [6] CPI & Fed Policy - CPI is expected to pick up, potentially causing a market reaction, and influencing the probability of a Federal Reserve rate cut in September [14][15]

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Bankinter SA is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for BKNIY's full-year earnings has moved 16.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is ...

Industry Insights - Schwab's Head of Trading Services, James Kostulias, discusses retail traders' positioning for the second half of the year [1] Personnel - James Kostulias is the Head of Trading Services at Schwab [1]

Core Viewpoint - The current earnings season has seen several companies announce significant increases in share buyback authorizations, which can positively impact their earnings per share and share prices. Group 1: Charles Schwab - Charles Schwab reported strong earnings on July 18, beating estimates on both sales and adjusted EPS, leading to a 3% increase in share price [2][3] - On July 24, Schwab announced a new buyback authorization of $20 billion, nearly tripling its previous capacity of $6.9 billion, which represents 11.3% of its market capitalization [3][4] Group 2: D.R. Horton - D.R. Horton experienced a nearly 17% surge in shares after reporting fiscal Q3 2025 earnings on July 22, significantly exceeding sales and adjusted EPS estimates [7][9] - The company plans to increase buyback spending to between $4.2 billion and $4.4 billion for fiscal 2025, up from a previous forecast of $4 billion, indicating a commitment to reducing its share count by 1.4% to 1.9% next quarter [8][9] Group 3: Bank of America - Bank of America announced a substantial increase in its buyback capacity to $40 billion from $9.1 billion, which is approximately 11.1% of its market capitalization [10][11] - The bank reported solid earnings on July 16, beating adjusted EPS estimates but slightly missing on sales, with shares up around 5% since the report [12] Group 4: Teledyne Technologies - Teledyne Technologies reported record revenue of $1.5 billion for Q2, beating sales and adjusted EPS estimates, although shares fell slightly post-results [14][15] - The company announced a new $2 billion buyback authorization, doubling its previous capacity and representing 7.7% of its market capitalization [15][16] Group 5: Overall Market Implications - The trend of increasing buybacks among these firms reflects management confidence in their businesses and a commitment to returning capital to shareholders, which is seen as a positive signal for investors [16]

Core Viewpoint - The Charles Schwab Corporation (SCHW) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term gains [2][3][11]. Momentum Characteristics - Momentum investing involves following a stock's recent price trends, with the expectation that established trends will continue [1]. - SCHW's shares have increased by 4.16% over the past week, outperforming the Zacks Financial - Investment Bank industry, which rose by 1.42% during the same period [5]. - Over the past month, SCHW's price change is 8.52%, compared to the industry's 6.21% [5]. Long-Term Performance - In the last quarter, SCHW shares have risen by 19.08%, and over the past year, they have increased by 46.53% [6]. - In comparison, the S&P 500 has moved 16.04% in the last quarter and 19.71% over the past year, indicating SCHW's superior performance [6]. Trading Volume - SCHW's average 20-day trading volume is 8,598,255 shares, which is a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - Over the past two months, 10 earnings estimates for SCHW have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $4.28 to $4.56 [9]. - For the next fiscal year, 11 estimates have also moved upwards without any downward revisions [9]. Conclusion - Given the strong momentum indicators and positive earnings outlook, SCHW is positioned as a compelling investment opportunity for those seeking stocks with potential for significant near-term growth [11].