Why The Charles Schwab Corporation (SCHW) Is Gaining On Earnings Optimism Now

We recently compiled a list of the 5 Stocks Gaining On Earnings Optimism. In this article, we are going to take a look at where The Charles Schwab Corporation (NYSE:SCHW) stands against the other stocks.

The earnings season continues to move stocks higher as big names deliver their quarterly performance reports one by one. As a result, analysts are updating their models with the latest numbers, resulting in rating changes for these companies.

As the US indices struggle to find a specific direction in today’s trading, some stocks are clearly on an upward trajectory. We unearthed these stocks by looking at the recent earning reports, analyst upgrades, and the earnings calendar. To come up with the list of 5 stocks gaining on analyst expectations, we only considered stocks with a market cap of at least $75 billion.

A corporate finance professional studying a financial performance chart.

The Charles Schwab Corporation (NYSE:SCHW)

The Charles Schwab Corporation is a savings and loan holding company that provides financial advisory, banking, wealth management, and other services. The bank was upgraded by Wells Fargo from Equal Weight to Overweight with the target price raised from $89 to $93.

According to the analysts, SCHW’s operating margins and net interest margins are likely to grow going forward. The balance sheet is solid and will only get stronger in 2025, with the stock buyback program adding more shareholder value. Overall the company is also anticipated to report better organic growth.

On the recent upgrade, EPS estimates were also revised from $3.28 to $4.15 for 2025. The stock followed an upward trend in the past year with a gain of over 20%. The company is focused on AI implementation, product expansion, and capacity for growth which makes it a compelling candidate for growth-oriented investors.

Overall SCHW ranks 3rd on our list of the stocks that are gaining on earnings optimism. While we acknowledge the potential of SCHW as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as SCHW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.