Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Charles Schwab Corporation (SCHW) is currently recommended as a growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects beyond traditional metrics [2] Group 2: Earnings Growth - Historical EPS growth for Charles Schwab is 5.9%, but projected EPS growth for this year is 17.6%, significantly surpassing the industry average of 11.9% [5] Group 3: Cash Flow Growth - Year-over-year cash flow growth for Charles Schwab stands at 22.3%, exceeding the industry average of 14.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 13.7%, compared to the industry average of 8.3% [7] Group 4: Earnings Estimate Revisions - Current-year earnings estimates for Charles Schwab have been revised upward, with the Zacks Consensus Estimate increasing by 3.9% over the past month [8] Group 5: Investment Potential - Charles Schwab has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, indicating strong potential for growth investors [9][10]

Core Viewpoint - The Charles Schwab Corporation (SCHW) is identified as a strong momentum stock, currently holding a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating potential for significant near-term gains [2][3][11]. Momentum Characteristics - Momentum investing focuses on following a stock's recent price trends, with the aim of capitalizing on established price movements [1]. - SCHW's shares have increased by 3.64% over the past week, outperforming the Zacks Financial - Investment Bank industry, which rose by 1.49% during the same period [5]. - Over the past quarter, SCHW's shares have risen by 10.21%, and over the last year, they have gained 26.77%, significantly outperforming the S&P 500's increases of 3.46% and 14.89%, respectively [6]. Trading Volume - The average 20-day trading volume for SCHW is 7,538,009 shares, which serves as a bullish indicator when combined with rising stock prices [7]. Earnings Estimates - In the last two months, 11 earnings estimates for SCHW have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $5.55 to $5.73 [9]. - For the next fiscal year, 6 estimates have also moved higher, with no downward revisions noted [9]. Conclusion - Given the strong momentum indicators and positive earnings outlook, SCHW is positioned as a promising investment opportunity for those seeking stocks with potential for short-term gains [11].

Company Performance - Shares of The Charles Schwab Corporation (SCHW) have increased by 2.2% over the past month, reaching a new 52-week high of $105.81 [1] - Year-to-date, Charles Schwab has gained 4.1%, while the Zacks Finance sector and the Zacks Financial - Investment Bank industry have seen gains of 17.9% and 36.1%, respectively [1] Earnings and Revenue Expectations - Charles Schwab has consistently beaten the Zacks Consensus Estimate in the last four quarters, with the latest EPS reported at $1.39 against a consensus of $1.36 [2] - For the current fiscal year, earnings are expected to be $5.73 per share on revenues of $26.24 billion, reflecting a 17.66% increase in EPS and a 9.68% increase in revenues [3] - For the next fiscal year, projected earnings are $6.76 per share on revenues of $29 billion, indicating year-over-year changes of 17.96% and 10.54%, respectively [3] Valuation Metrics - Charles Schwab currently trades at 18.2 times the current fiscal year EPS estimates, which is above the peer industry average of 16.4 times [7] - On a trailing cash flow basis, the stock trades at 17.4 times compared to the peer group's average of 14.4 times [7] - The stock has a PEG ratio of 0.87, which does not place it among the top echelon of stocks from a value perspective [7] Zacks Rank and Style Scores - Charles Schwab holds a Zacks Rank of 2 (Buy) due to a solid earnings estimate revision trend [8] - The company has a Value Score of B, and both Growth and Momentum Scores are A, resulting in a combined VGM Score of A [6][8] Industry Comparison - Interactive Brokers Group, Inc. (IBKR) is a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of C, Growth Score of B, and Momentum Score of A [9] - IBKR is expected to post earnings of $2.31 per share on revenues of $6.39 billion for the current fiscal year, having beaten the consensus estimate by 25% last quarter [10] - The Financial - Investment Bank industry is performing well, ranking in the top 14% of all industries, providing favorable conditions for both SCHW and IBKR [11]

Core Viewpoint - Charles Schwab Corporation is experiencing strong financial performance, with analysts projecting a significant upside in its stock price based on recent earnings and revenue growth [1][2][6] Financial Performance - For the quarter ending December 2025, Charles Schwab reported a revenue of $6.34 billion, reflecting an 18.9% increase year-over-year, slightly exceeding the Zacks Consensus Estimate of $6.33 billion [2][6] - The company's earnings per share (EPS) for the same period was $1.39, up from $1.01 a year ago, surpassing the consensus estimate of $1.36 and delivering a surprise of 2.31% [3][6] Stock Performance - Currently, SCHW is priced at $101.79, with a recent change of $0.80, indicating a 0.79% increase [4] - Over the past year, SCHW has experienced a high of $104.98 and a low of $65.88, suggesting a stable yet dynamic trading environment [4] Market Position - Charles Schwab's market capitalization is approximately $184.77 billion, with a trading volume of 14.67 million shares, reflecting strong investor confidence [5] - Barclays analyst Benjamin Budish has set a price target of $125 for SCHW, indicating a potential upside of 22.8% from its current price [1][6]

Group 1 - Johnson & Johnson reported a healthy revenue beat and a modest earnings beat, with a strong full-year forecast, but the stock remained unchanged after the earnings report [1] - The stock experienced a significant decline intraday, influenced by a previous increase of over 40% last year and an additional 5% year-to-date prior to the earnings announcement [1] - The company has spun off its orthopedics division, allowing it to focus on its pharmaceutical business, which is expected to perform better without the commoditized orthopedics segment [2] Group 2 - Johnson & Johnson's pharmaceutical pipeline includes some of the best drugs, which are expected to shine without the constraints of the orthopedics business [2] - The company faces ongoing lawsuits related to its talc products, but these legal challenges are perceived to have less impact on the stock's performance as the company is actively fighting each claim [2] - There is a belief that certain AI stocks may offer greater upside potential compared to Johnson & Johnson, indicating a competitive investment landscape [3]

Core Viewpoint - The ETF market is expected to continue its growth in both scale and structure, with a focus on the importance of institutional funds and the potential decline in the influence of thematic ETFs in the future [3]. Domestic Market: Policy and Market Development - The regulatory environment is enhancing the ETF industry ecosystem, with various measures introduced by the CSRC and exchanges to support the establishment and expansion of ETF products [4]. Scale and Growth: Market Expansion - By the end of 2025, the ETF market size exceeded 6 trillion yuan, marking a 61.7% increase from the beginning of the year, with the number of products rising to 1,381, a growth of 33.7% [5]. - All types of ETFs experienced varying degrees of growth, with stock, bond, commodity, and money market ETFs increasing by 44%, 376%, 231%, and 11% respectively [5]. Product Structure and Trends - As of the end of 2025, stock ETFs dominated the market, comprising 93% of the total number of ETFs, while their scale accounted for 79% of the total ETF market size [7]. - Thematic and cross-border products saw significant growth, with cross-border products increasing by 120% [11]. Fund Flows and Investor Behavior - Stock ETFs experienced a net inflow of approximately 450 billion yuan in 2025, a decrease of 57% compared to 2024, indicating a "buy high, sell low" behavior among investors [12]. - Bond ETFs saw explosive growth, with a total scale increase of 376% to 828.2 billion yuan, driven by policy support and new product launches [13]. Competitive Landscape - The competitive landscape for ETFs is becoming more intense, with a decline in concentration among fund companies and products, as evidenced by the market share of the top five companies dropping from 67% to 56% [15]. Product Issuance: Record Highs - In 2025, a record 356 passive ETFs were issued, with a total issuance scale of 251.2 billion yuan, marking a 106% increase from 2024 [15]. Outlook for 2026: Growth Potential - The absolute scale of the ETF market is expected to continue rising, with a projected growth rate of 0% to 5% from new issuances, while net inflows are anticipated to contribute 10% to 30% to the growth [30]. - The market is expected to see a slight increase in the share of passive products due to ongoing reforms and the demand for tool-based passive products [31]. Active vs. Passive Investment - Active equity products are predicted to slightly outperform index products in 2026, with a forecasted excess return of 2.5% [47]. - The market is expected to remain stable or show slight upward trends, supporting the performance of active products [47]. Thematic ETFs: Future Prospects - Thematic ETFs have regained prominence in 2025, primarily driven by significant capital inflows, contrasting with previous years where growth was mainly from new product issuances [48].

Core Insights - The Charles Schwab Corporation reported $6.34 billion in revenue for Q4 2025, marking an 18.9% year-over-year increase and a slight surprise of +0.1% over the Zacks Consensus Estimate of $6.33 billion [1] - Earnings per share (EPS) for the same period was $1.39, up from $1.01 a year ago, exceeding the consensus EPS estimate of $1.36 by +2.31% [1] Financial Performance Metrics - Total client assets reached $11,903 billion, surpassing the average estimate of $11,803.17 billion by analysts [4] - The net interest margin was reported at 2.9%, matching the average estimate [4] - Daily Average Trades (DATs) were 8.27 million, exceeding the average estimate of 7.79 million [4] - Average Interest Earning Assets stood at $431.14 billion, slightly below the estimated $437.45 billion [4] Revenue Breakdown - Net interest revenue was $3.17 billion, above the average estimate of $3.15 billion, reflecting a year-over-year increase of +25.3% [4] - Other net revenues were reported at $127 million, below the average estimate of $159.74 million, showing a year-over-year decline of -27.4% [4] - Bank deposit account fees totaled $238 million, slightly below the average estimate of $242.78 million, with a year-over-year change of -1.2% [4] - Asset management and administration fees reached $1.73 billion, exceeding the average estimate of $1.7 billion, with a year-over-year increase of +14.8% [4] - Trading revenue was reported at $1.07 billion, above the estimated $1.04 billion, reflecting a +22.1% change year-over-year [4] - Schwab money market funds generated $465 million, slightly above the average estimate of $462.49 million, with a year-over-year increase of +19.5% [4] - Asset management fees from equity and bond funds, ETFs, and CTFs were $140 million, slightly below the average estimate of $141.85 million, with a +12% year-over-year change [4] - Mutual Fund OneSource and other no-transaction-fee funds generated $267 million, close to the average estimate of $269.88 million, reflecting a +15.6% year-over-year change [4]

分组1 - The Charles Schwab Corporation reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and showing an increase from $1.01 per share a year ago, resulting in an earnings surprise of +2.31% [1] - The company posted revenues of $6.34 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.10%, and up from $5.33 billion year-over-year [2] - Charles Schwab has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Charles Schwab shares have increased by approximately 1.1% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $6.41 billion, and for the current fiscal year, it is $5.68 on revenues of $26.16 billion [7] 分组3 - The Zacks Industry Rank places the Financial - Investment Bank sector in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Charles Schwab is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6]

Group 1 - The company reported fourth-quarter earnings that matched analyst expectations with adjusted earnings per share of $1.39 and record revenue of $6.34 billion, reflecting a 19% increase year over year [1] - Total client assets rose 18% year over year to a record $11.90 trillion, with core net new assets totaling $163.9 billion for the quarter [2] - The net interest margin expanded to 2.90%, an increase of 57 basis points from the previous year, while asset management and administration fees increased by 15% to $1.7 billion [3] Group 2 - Trading revenue climbed 22% compared to the prior-year quarter, indicating strong performance in trading activities [3] - Full-year inflows reached $519.4 billion, reflecting organic growth of 5.1% [2]

Exhibit 99.1 https://files.repo SCHWAB REPORTS RECORD 4Q AND FULL YEAR 2025 RESULTS 4Q Core Net New Assets Total $163.9 Billion; Full-Year Organic Growth of 5.1% 4Q Net Revenues Up 19% Year-Over-Year to a Record $6.3 Billion Quarterly GAAP Earnings Per Share of $1.33, $1.39 Adjusted – Up 38% versus 4Q24 (1) WESTLAKE, Texas, January 21, 2026 – The Charles Schwab Corporation reported net income for the fourth quarter totaling $2.5 billion, or $1.33 earnings per share. Excluding $127 million of pre-tax transac ...