5 Stocks that Will Bounce Back According to Reddit

2. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 88

The Charles Schwab Corporation (NYSE:SCHW) ranks 2nd in our list of the stocks that will bounce back according to Reddit. The Charles Schwab Corporation (NYSE:SCHW) has lost about 26% year to date through September 13. The Charles Schwab Corporation (NYSE:SCHW) suffered massively after a major banking crisis jolted the industry. But analysts believe Charles Schwab Corporation (NYSE:SCHW) is out of the woods and many also praised the company for handling the crisis well. Redditors also believe SCHW is providing an attractive entry point.

As of the end of the second quarter of 2023, 88 hedge funds out of the 910 funds tracked by Insider Monkey were long The Charles Schwab Corporation (NYSE:SCHW). The biggest stakeholder of The Charles Schwab Corporation (NYSE:SCHW) was Natixis Global Asset Management’s Harris Associates which owns a $1.1 billion stake in the company.

ClearBridge Large Cap Value Strategy made the following comment about The Charles Schwab Corporation (NYSE:SCHW) in its Q2 2023 investor letter:

“We have done so recently with The Charles Schwab Corporation (NYSE:SCHW), which got caught up in investor concerns over regional banks, due to the perception of an asset/liability mismatch on Schwab’s balance sheet. While there are similarities with regional banks, Schwab has minimal credit risk and far higher organic growth than traditional banks. In addition, Schwab’s mostly retail customers are not pulling money out of its ecosystem. On the contrary, the company continues to grow client assets at a mid-single-digit percentage rate despite the banking selloff. Concerned over interest rate risk, we trimmed our position last year and earlier this year. As the stock pulled back this spring, we added back aggressively. It remains an exceptionally strong franchise in terms of asset gathering and customer loyalty and runs a unique business model that continues to attract client assets; we are pleased to have the opportunity to express our differentiated view.”