Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - Toronto-Dominion Bank (TD) is divesting its remaining 10.1% equity stake in Charles Schwab Corporation (SCHW) to enhance capital and liquidity flexibility while realizing a significant return on its investment [1][4]. Group 1: Transaction Details - TD will sell approximately 165.4 million shares at $79.25 per share, with Schwab acquiring nearly 19.2 million shares for a total of $1.5 billion [1][2]. - The sale is expected to be completed on February 12, 2025, subject to customary closing conditions [1]. - Following the sale, TD will no longer have representation on Schwab's board, but its insured deposit account agreement will remain unaffected [2]. Group 2: Financial Implications - The divestment is projected to yield net proceeds of around C$20 billion after accounting for taxes and underwriting fees, resulting in C$15 billion in CET1 capital generated, equating to a 247 basis points increase in CET1 capital [4]. - The deal is anticipated to be accretive to TD's earnings per share by approximately 1% in 2025 [4]. Group 3: Strategic Review and Future Plans - The divestment is part of a broader strategic review initiated after a $3.1 billion fine and regulatory limitations on TD's U.S. retail banking expansion due to money laundering concerns [6][9]. - TD plans to utilize C$8 billion from the proceeds to repurchase about 100 million shares over the next 12 months, pending regulatory approval, with the remaining funds aimed at advancing strategic initiatives and organic growth [5][7]. - The strategic review aims to optimize costs, simplify the portfolio, and invest in new technology, expected to be completed in the second half of the year [7]. Group 4: Market Context - TD is restructuring its U.S. retail assets by approximately 10% to comply with a $434 billion limit set by U.S. regulators amid anti-money laundering concerns [9]. - Over the past year, TD's shares have increased by 4.8%, while Schwab's shares have surged by 32.7% [9].

Earnings Estimate Revisions - The earnings outlook for Charles Schwab is improving, with notable upward revisions in earnings estimates [1] - Consensus earnings estimates for the next quarter and full year have moved considerably higher due to strong agreement among analysts [3] - For the current quarter, the company is expected to earn $0.96 per share, a 29.73% increase from the year-ago reported number [4] - Over the last 30 days, the Zacks Consensus Estimate for Charles Schwab has increased by 7.32% due to seven upward revisions and no negative revisions [4] - For the full year, the earnings estimate of $4.19 per share represents a 28.92% increase from the year-ago number [5] - Over the past month, nine estimates have moved up for Charles Schwab versus one negative revision, pushing the consensus estimate 7.41% higher [5] Stock Performance and Investment Potential - The stock has gained 9.4% over the past four weeks, driven by strong estimate revisions and decent investments [7] - Further upside may still be left in the stock, making it a potential addition to portfolios [7] Zacks Rank and Analyst Optimism - Charles Schwab has earned a Zacks Rank 2 (Buy) due to promising estimate revisions [6] - The Zacks Rank system has a strong track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [6] - Analysts' growing optimism on the earnings prospects of Charles Schwab is driving estimates higher, which should be reflected in its stock price [2]

Brokerage firm Charles Schwab (NYSE: SCHW ) reported better than expected earnings for its fourth fiscal quarter due to strong earnings growth and new asset inflows throughout Q4. Charles Schwab remained highly profitable, with the brokerage platform generating almost $2.0B in quarterlyI look for high-risk, high-reward situations, mainly in the technology markets. I am an early buyer of Bitcoin and my portfolio mainly focused on companies with asymmetric long-term upside. My top holdings include: Bitcoin, T ...

Momentum Investing Overview - Momentum investing focuses on following a stock's recent trend, aiming to buy high and sell even higher [1] - The Charles Schwab Corporation (SCHW) holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - SCHW has a Zacks Rank of 2 (Buy), with research showing that stocks with Zacks Rank 1 or 2 and Style Scores of A or B tend to outperform the market over the following one-month period [3] Price Performance Analysis - SCHW shares are up 5% over the past week, compared to the Zacks Financial - Investment Bank industry's 7.51% gain [5] - Over the past month, SCHW shares have increased by 8.14%, outperforming the industry's 6.16% growth [5] - SCHW shares have risen 12.57% over the past quarter and 26.61% over the past year, outperforming the S&P 500's gains of 3.62% and 26.55%, respectively [6] Trading Volume and Earnings Outlook - SCHW's average 20-day trading volume is 6,598,758 shares, which is a useful indicator of price-to-volume trends [7] - Over the past two months, 9 earnings estimates for SCHW have moved higher compared to 1 lower for the full year, boosting the consensus estimate from $3.86 to $4.04 [9] - For the next fiscal year, 7 earnings estimates have moved upwards, with only 1 downward revision in the same period [9] Conclusion - Given its strong momentum characteristics, SCHW is a 2 (Buy) stock with a Momentum Score of A, making it a promising near-term investment [11]

The investment services company surpassed expectations with 49% EPS growth and strengthened revenue.Charles Schwab (SCHW 5.92%), a leading provider of financial services, released its fourth-quarter report on Tuesday. Its results featured significant revenue and earnings growth that exceeded analysts' expectations. The company reported adjusted earnings per share (EPS) of $1.01, beating the analyst forecast of $0.91. Total revenue rose 20% to $5.329 billion compared to the expected $5.195 billion, reflectin ...

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D investment increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 10% increase in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Implemented a new whistleblower policy to ensure ethical practices across the organization [17]. - Conducted annual audits with no material findings, reinforcing financial integrity [18].

Business Update Overview - The Charles Schwab Corporation held its 2025 Winter Business Update Conference Call on January 21, 2025, at 8:30 AM ET [1] - Key participants included Jeff Edwards (Head of Investor Relations), Rick Wurster (President & CEO), and Mike Verdeschi (CFO) [2] - The call focused on reviewing the company's strong performance in Q4 and full-year 2024, as well as discussing growth opportunities for 2025 and beyond [3] Conference Call Logistics - Presentation slides were made available on the Investor Relations website after the prepared remarks [4] - The Q&A session followed a "one question, no follow-up" rule, with participants encouraged to re-enter the queue for additional questions if time allowed [4] - The Investor Relations team remained available for further inquiries following the update [4] Financial Performance - The company reported strong results for Q4 and full-year 2024, which were posted earlier on the day of the conference call [3] - Key drivers of the company's momentum throughout 2024 were discussed during the call [3] Leadership Update - Rick Wurster, previously President, was introduced as the new CEO during the conference call [2]

Industry/Company * **Company**: The Charles Schwab Corporation (NYSE: SCHW) * **Industry**: Investment Banking, Financial Services Core Points and Arguments * **2024 Q3 Results**: Schwab reported strong financial results for the third quarter of 2024, with revenue up 5% year-over-year to $4.8 billion, adjusted pre-tax income up 5%, and adjusted EPS of $0.77. * **Client Growth**: Schwab experienced strong client growth, with net new assets more than doubling from the third quarter of 2023. Former Ameritrade clients continued to contribute positively to net new assets. * **Strategic Focus Areas**: Schwab outlined four strategic focus areas: Scale & Efficiency, Win-Win Monetization, Client Segmentation, and the Brilliant Basics. Progress was made in each area during the third quarter. * **Cost Efficiency**: Schwab captured 95% of its Ameritrade run rate expense synergies and expects to capture the rest by the end of the year. Adjusted expense on client assets (EOCA) fell to 12 basis points in 2024, down from 16 in 2019. * **Wealth Management**: Schwab saw strong growth in managed investing net flows, with year-to-date managed investing net flows up 65% compared to last year. Clients added $11.5 billion to Schwab's full-service wealth offers in the third quarter, a 75% increase from the prior year quarter. * **Pledged Asset Line (PAL)**: PAL balances reached a record $15.7 billion, an increase of 16% over last year. Former Ameritrade clients represented 44% of PAL balance growth. * **RIA Services**: Schwab continues to invest in its custody business for RIAs, providing them with an open architecture platform and unmatched resources, services, and education. * **Client Experience**: Schwab focused on improving the client experience, with average speed to answer the phone less than 40 seconds in the third quarter and client easy scores for service teams at 92%. * **Capital Levels**: Schwab's adjusted Tier 1 Leverage ratio expanded by over 70 basis points to 6.7% in the third quarter, approaching its 6.75% to 7% operating objective. Other Important Points * **Transition**: Walt Bettinger, Co-Chairman and CEO, will transition into his new role as Executive Co-Chairman, and Rick Wurster will assume the role of CEO in January 2025. * **CFO Transition**: Mike Verdeschi joined Schwab as CFO in May 2024 and provided an update on the company's financial performance and outlook. * **Securities Portfolio**: Schwab does not plan to pursue a holistic restructuring of its securities portfolio at this time, as it focuses on paying down supplemental funding at the banks. * **Capital Allocation**: Schwab's capital allocation strategy will focus on supporting business growth, paying down supplemental borrowings, and returning capital to shareholders through various means, including dividends, preferred security redemptions, and stock buybacks. * **2025 Outlook**: Schwab expects to continue building momentum in 2025, with revenue growth in the mid-single digits and adjusted EPS in the upper 80s range. The company remains confident in its ability to deliver profitable growth and return capital to shareholders.

Earnings Performance - Charles Schwab's Q4 2024 adjusted earnings of $1.01 per share beat the Zacks Consensus Estimate of 90 cents, marking a 49% year-over-year increase [1] - Net income (GAAP basis) for Q4 2024 was $1.84 billion or 94 cents per share, up from $1.05 billion or 51 cents per share in the year-ago quarter [3] - For full-year 2024, adjusted earnings were $3.25 per share, surpassing the consensus estimate of $3.16 and rising 4% year-over-year [4] - Full-year net income (GAAP basis) was $5.94 billion or $2.99 per share, up from $5.07 billion or $2.54 per share in 2023 [4] Revenue and Expenses - Q4 2024 net revenues were $5.33 billion, a 20% year-over-year increase, beating the Zacks Consensus Estimate of $5.18 billion [5] - Full-year 2024 net revenues grew 4% to $19.61 billion, surpassing the consensus estimate of $19.46 billion [5] - Total non-interest expenses (GAAP basis) decreased 7% to $3.02 billion in Q4 2024 [6] - Adjusted total expenses were $2.85 billion in Q4 2024, relatively stable year-over-year [6] Business Metrics - Total client assets as of Dec 31, 2024, were $10.1 trillion, up 19% year-over-year [8] - Net new assets in Q4 2024 were $108.4 billion [8] - Schwab added 1.11 million new brokerage accounts in Q4 2024, bringing total active brokerage accounts to 36.5 million [8] - The company had 2 million banking accounts and 5.4 million corporate retirement plan participants as of Dec 31, 2024 [8] Profitability and Assets - Pre-tax profit margin increased to 43.3% in Q4 2024 from 26.8% in the prior-year quarter [6] - Annualized return on equity was 18% as of Dec 31, 2024, up from 12% in the prior-year quarter [7] - Average interest-earning assets decreased 3% to $426.4 billion in Q4 2024 [6] Industry Context - Raymond James is scheduled to announce quarterly earnings on Jan 29, with the Zacks Consensus Estimate revised 1.5% upward to $2.75, suggesting a 14.9% rise from the prior-year quarter [11] - LPL Financial is set to announce Q4 and full-year 2024 results on Jan 30, with the Zacks Consensus Estimate for quarterly earnings at $3.88, implying 10.5% growth from the prior-year quarter [12]