Analysts are Recommending These 5 Stocks for 2022

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 59    

The Charles Schwab Corporation (NYSE:SCHW) provides wealth management and other financial services. The company has more than $7 trillion in assets under management and rising interest rates in 2022 are expected to mint hundreds of millions in additional earnings. Bank of America analyst Craig Siegenthaler believes the firm is “best-positioned for higher rates and elevated inflation given the unique model in how it monetizes its client relationships through their cash sweep balances”. 

Deutsche Bank analyst Brian Bedell recently raised the price target on The Charles Schwab Corporation (NYSE:SCHW) stock to $120 from $100 and kept a Buy rating on the shares, noting that banks would benefit from the expected rise in interest rates in 2022. 

At the end of the third quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in The Charles Schwab Corporation (NYSE:SCHW), compared to 72 in the previous quarter worth $4.8 billion.

In its Q3 2021 investor letter, Ariel Investments, an investment management firm, highlighted a few stocks and The Charles Schwab Corporation (NYSE:SCHW) was one of them. Here is what the fund said:

“Additionally, financial services provider Charles Schwab Corporation (SCHW) was another strong performer in the period. Management has made progress increasing new and existing customer engagement through its multichannel approach and low-cost, high value product offerings—bolstering the company’s competitive positioning. Elevated interest rate expectations have been another driver of performance as SCHW reinvests deposits in securities and earns a spread. In our view, SCHW has the ability to weather various macro-economic and competitive pressures by flexing its scale and customercentric focus in support of the company’s industry leading cost advantage. We also believe the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s market place standing and long-term growth trajectory.”