We recently published a list of Long-Term Stock Portfolio: 15 Best Stocks for 15 Years. In this article, we are going to take a look at where The Charles Schwab Corporation (NYSE:SCHW) stands against other best stocks for 15 years.
Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance.
Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Sectors Providing Investment Opportunities
With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration’s emphasis on expanding LNG (liquified natural gas) production.
The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments.
Our Methodology
We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A corporate finance professional studying a financial performance chart.
The Charles Schwab Corporation (NYSE:SCHW)
10-Year Revenue Growth: ~12.6%
Number of Hedge Fund Holders: 91
The Charles Schwab Corporation (NYSE:SCHW) operates in brokerage, banking, and asset-management businesses. Morgan Stanley analysts upped the company’s stock from “Equal-weight” to “Overweight.” The revision demonstrates a favorable outlook on its unique earnings recovery potential and the perceived value of the brokerage as a high-quality franchise amidst economic uncertainty. Furthermore, the upgrade was aided by the belief that The Charles Schwab Corporation (NYSE:SCHW) possesses defensive characteristics, making it suitable to the current economic environment.
The analysts at Morgan Stanley believe that the impact of tariffs on inflation can prevent the US Fed from cutting rates too soon or too sharply. This scenario is anticipated to favour The Charles Schwab Corporation (NYSE:SCHW). In a less certain economic landscape, customer sweep cash balances can witness an increase, providing additional support to earnings. Elsewhere, Jefferies analyst Daniel Fannon maintained a “Buy” rating on The Charles Schwab Corporation (NYSE:SCHW)’s stock with the price objective of $89.00. The improvement in macroeconomic conditions can benefit the company moving forward. As and when economic growth strengthens, it can lead to increased investor confidence and elevated trading volumes.
Nightview Capital, an investment management company that concentrates exclusively on publicly traded equity strategies, published its Q4 2024 investor letter. Here is what the fund said:
“Finance is transforming. Technology is democratizing access, reshaping wealth management, and enabling entirely new models of investing. From algorithmic trading to digital-first advisory platforms, the sector is evolving rapidly. Investors demand smarter, more sustainable options. The potential is significant, and we are focused on companies shaping how people save, invest, and transact in the years to come.
The Charles Schwab Corporation (NYSE:SCHW): Core Opportunity: Schwab is rebounding after a challenging period, supported by leadership stability, operational improvements, and client retention gains.
Key Highlights: Leadership Transition: Incoming CEO Rick Wurster continues the strategic vision of Schwab’s founder and most recent CEO…” (Click here to read the full text)
Overall, SCHW ranks 12th on our list of best stocks for 15 years. While we acknowledge the potential of SCHW as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than SCHW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
