10 Best Stocks Under $100 To Invest In

5) The Charles Schwab Corporation (NYSE:SCHW)

Stock Price as of November 6: $75.75

Number of Hedge Fund Holders: 72

The Charles Schwab Corporation (NYSE:SCHW) continues to operate as a savings and loan holding company, offering wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.

The Charles Schwab Corporation (NYSE:SCHW)’s competitive advantages stem from massive scale and industry-leading cost efficiency, which should support its growth trajectory. The company’s strategic initiatives primarily include expansion of lending opportunities, international expansion, capital-light strategy, and workplace financial services. The Charles Schwab Corporation (NYSE:SCHW) remains focused on deepening its relationships with employers and expanding its presence in the workplace financial services market.

The company’s focus on expanding its lending business offers a strong opportunity for earnings growth. The Charles Schwab Corporation (NYSE:SCHW)’s large client base offers a significant untapped market for lending products, such as margin loans, mortgages, and other forms of credit. Wall Street believes that this shift towards lending is a positive, capital-light strategy that can fuel higher NII and improve overall profitability.

Furthermore, The Charles Schwab Corporation (NYSE:SCHW)’s strong capital generation placed the company to potentially resume share buybacks in early 2025. Analysts at JPMorgan Chase & Co. increased their price objective on the company’s shares from $86.00 to $87.00, giving it an “Overweight” rating on 16^th October.

The London Company, an investment management company, released third-quarter 2024 investor letter. Here is what the fund said:

“The Charles Schwab Corporation (NYSE:SCHW) – SCHW underperformed the broader market as the company reported an optically bad quarter, though with little implications on company fundamentals. Cash sorting from consumers continued in the latest quarter and has persisted longer than we anticipated. We believe that an end to SCHW’s headwinds are near, especially as the Federal Reserve shifts to cutting rates, and consequently, we expect a strong rebound in earnings power within the next 18 months. Longer term, we believe SCHW is well positioned to continue capturing market share and driving sustainable earnings growth.”