10 Best Holding Company Stocks To Buy Now

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8. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 72

The Charles Schwab Corporation (NYSE:SCHW) ranks eighth on our list of the best holding stocks to buy now. The financial services company owns several subsidiaries that offer banking, commercial banking, and investment-related services. These include ThomasPartners, Inc., OptionsXpress, and Family Wealth Alliance, LLC.

The Charles Schwab Corporation (NYSE:SCHW) manages $9.74 trillion in client assets making it one of the largest banking services providers in the United States. The company also manages 1.9 million banking accounts and 35.9 million brokerage accounts, adding another million during Q2 2024. It also facilitates 5.72 million daily average trades and has $25 billion in assets under management, growing at a compound annual growth rate (CAGR) of 23% since July 2020.

Overall, 2024 is a transition year for the firm, as it anticipates Ameritrade’s acquisition to close and expects positive cash flows for clients by the end of the year. In the third quarter of 2024, The Charles Schwab Corporation (NYSE:SCHW) expects revenue to increase by 2% to 3% relative to the previous quarter and report a pre-tax profit margin of at least 40%.

The company’s growth trajectory is obvious and it expects to deliver strong results before the end of 2024. Such explains why analysts are bullish on the stock. Their 12-month median price target of $71 points to a 10% upside from current levels. Overall, SCHW was held by 72 hedge funds at the close of Q2 2024 and Harris Associates was the largest shareholder with a position worth $1.69 billion.

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