Core Viewpoint - Charles Schwab (SCHW) shares have experienced a decline of 9.7% over the past month, reflecting broader market challenges, with the S&P 500 Index falling 6% during the same period due to economic and policy-related concerns [1][2] Group 1: Market Context - Key factors contributing to the sell-off include escalating trade tensions, newly imposed tariffs on Canada, Mexico, and China, and retaliatory measures from these nations [2] - Uncertainty surrounding the Federal Reserve's monetary policy stance and the broader economic impact of tariffs has fueled bearish investor sentiment [2] Group 2: Company Performance and Strategy - Following a subdued second-quarter performance last year, Schwab announced a strategy to rely more on off-balance sheet arrangements to house deposits, leading to a 49% reduction in its supplemental funding balance by the end of 2024, down to $49.9 billion from a peak of $97.1 billion in May 2023 [6] - The company's net interest margin (NIM) improved to 2.12% in 2024 from 1.98% in 2023 and 1.78% in 2022, with expectations for 2025 NIM to be in the range of 2.55-2.65% [6] Group 3: Client Base and Revenue Growth - Schwab has been actively increasing its client base in advisory solutions through acquisitions, which have strengthened its market position [7] - Despite lowering fees on certain investment products, revenues increased due to improved average client asset balances, with total managed investing solutions revenues growing at a compound annual growth rate (CAGR) of 12.2% over the last five years [7] - Total client assets recorded a CAGR of 20.1% during the same period, driven by acquisitions and market appreciation [7] Group 4: Trading Revenue and Future Projections - Trading revenues are expected to improve, with a negative three-year CAGR of 7.7% ending in 2024, but growth was observed in 2024 due to increased trading volume and client activity [8] - The company anticipates revenue growth of 13-15% based on assumptions of Fed Fund rates at 4.25% by the end of 2025 and equity markets appreciating approximately 6.5% [9] Group 5: Financial Health and Dividends - As of December 31, 2024, Schwab had cash and cash equivalents of $42.1 billion and total debt of $45.1 billion, maintaining a low-cost capital structure to support capital distributions [11] - In January 2025, Schwab announced an 8% increase in its quarterly dividend to 27 cents per share, having raised dividends four times in the past five years [11] Group 6: Analyst Sentiment and Earnings Estimates - Earnings estimates for Schwab have been revised upward for 2025 and 2026, indicating bullish sentiment for the stock [13] - The estimate for 2025 suggests a year-over-year growth of 29.5%, with a long-term earnings per share growth rate projected at 19.3% [16] Group 7: Investment Outlook - The steps taken by Schwab to enhance NIM, grow client assets, increase investing solution revenues, and improve trading income reflect solid prospects for sustained growth [19] - Schwab is considered an ideal candidate for investors' portfolios, currently carrying a Zacks Rank of 2 (Buy) [20]

Core Viewpoint - TD Bank has fully exited its 10.1% stake in Charles Schwab by selling 184.7 million shares through a secondary offering, with Schwab repurchasing $1.5 billion of its stock directly from TD [1] Group 1: Company Actions - TD Bank sold all of its 184.7 million shares in Charles Schwab [1] - Charles Schwab repurchased $1.5 billion of its stock from TD Bank [1] Group 2: Stake Details - The stake sold by TD Bank represented 10.1% of Charles Schwab [1]

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their investment confidence [1] Summary by Categories Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, appealing to value investors [3] Growth Score - The Growth Style Score emphasizes a company's financial health and future prospects, analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing metrics like one-week price changes and monthly earnings estimate changes to identify optimal entry points [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while stocks with a 3 rank should also have A or B Scores to maximize upside potential [9][10] Company Profile: The Charles Schwab Corporation - The Charles Schwab Corporation, based in Westlake, TX, operates as a savings and loan holding company, offering a range of financial services including wealth management, securities brokerage, and asset management, with nearly 400 branches across the U.S. and international locations [11] Investment Potential of Charles Schwab - Charles Schwab holds a Zacks Rank of 2 (Buy) and a VGM Score of B, with a Growth Style Score of B indicating a projected year-over-year earnings growth of 29.5% for the current fiscal year, supported by upward revisions from nine analysts [12][13]

Core Viewpoint - Charles Schwab faces concerns regarding net interest margins, regulatory changes, and perceived stock valuation, which have impacted its stock performance [1] Group 1: Company Analysis - The company is experiencing pressure on net interest margins, which could affect profitability [1] - Regulatory changes are anticipated to weigh on the company's financial performance [1] - The stock is considered "expensive" based on its price-to-earnings ratio, contributing to investor hesitance [1] Group 2: Analyst Insights - Motti Sapir, an economist and financial analyst, emphasizes the importance of understanding market trends and data analysis [1] - The analyst aims to simplify complex financial concepts for investors, making financial data more accessible [1] - Sapir's approach includes creating clear visuals to present financial information effectively [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Securities registered pursuant to Section 12(g) of the Act: None Commission File Number: 1-9700 THE CHARLES SCHWAB CORPORATION (Exact name of registrant ...

Charles Schwab (SCHW) released its monthly activity report for January 2025. The company’s core net new assets of $30.6 billion declined from the previous month’s $61.4 billion but surged substantially from $17.2 billion recorded in the year-ago month.SCHW’s January Performance BreakdownSCHW’s total client assets in January 2025 were $10.33 trillion, up 2.3% from December 2024 and 20.7% from the January 2024 level. Client assets receiving ongoing advisory services were $5.20 trillion, up 2.6% from the prior ...

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 ...