Jim Cramer is Talking About These 14 Stocks Before Earnings

7. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 72

Cramer thinks that the company has a few problems but they are in the past. Talking about The Charles Schwab Corporation (NYSE:SCHW), he remarked:

“Schwab’s one of the largest retail brokerages in the country, but its last few quarters have been greeted quite poorly. Bond portfolio issues… issues involving cash sweeps. I think these problems are past tense, and this situation is compelling, but I feel very lonely. Maybe this is the quarter where people will finally look at the future and how fabulous Schwab’s franchise really is. I can’t be sure, but they should.”

Charles Schwab (NYSE:SCHW) is a financial services provider, offering various solutions that include wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. As of August 31, 2024, the company reported 35.9 million active brokerage accounts, along with 5.4 million workplace plan participant accounts and 1.9 million banking accounts. The total client assets under management reached an impressive $9.74 trillion.

In September, Charles Schwab (NYSE:SCHW) shared a business update that outlined that its third-quarter performance is progressing in line with expectations, highlighting strong net new asset growth. In August alone, it reported net new asset growth of $32.8 billion, representing an increase of $4.9 billion compared to August of the previous year. The growth occurred amid expected client attrition in advance of a major client conversion weekend, which marks one of the busiest transition periods for the company throughout the year.

Additionally, the company noted a decrease in transactional sweep cash, with client funds awaiting investment declining from $371.8 billion in July to $366.8 billion in August. It was a significant improvement over the figures recorded in August of both 2023 and 2022.