Charles Schwab (SCHW) - 4.83% Below 52-Week High: Buy or Wait?

Stock Details

Charles Schwab Corp (SCHW), a prominent company in the financial services sector within the capital markets industry, is based in USA and primarily trades on the NYSE.Currently, the stock is trading at $101.60. Over the past 52 weeks, it has ranged between $83.96 and $106.76. This places the current price at 95.2% of its 52-week high and 21.0% above its 52-week low. Recent trading volume was recorded at 8,312,030. The 14-day Relative Strength Index (RSI) stands at 69.10, suggesting neutral conditions. The stock is currently trading above its 50-day moving average of $92.42 by 9.93%. Similarly, it is above its 200-day moving average of $94.59 by 7.41%. The MACD histogram is 0.55, indicating bullish momentum (MACD Line: 3.28, Signal Line: 2.72). The International Securities Identification Number (ISIN) for this stock is US8085131055.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

20.42

Near market average

Forward P/E

16.61

Earnings expected to grow

PEG Ratio

1.22

Reasonably valued

Price to Book

4.19

EPS (TTM)

$5.03

Price to Sales

7.09

Beta

0.76

Less volatile than market

Q:How is SCHW valued relative to its earnings and growth?

Charles Schwab Corp trades at a P/E ratio of 20.42, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 16.61 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.22 indicates reasonable value when growth is considered.

Q:What is SCHW's risk profile compared to the market?

With a beta of 0.76, Charles Schwab Corp is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 4.19 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

38.00%

Operating Margin

49.30%

Return on Equity

19.10%

Return on Assets

1.97%

Revenue Growth (YoY)

15.80%

Earnings Growth (YoY)

38.60%

Q:How profitable and efficient is SCHW's business model?

Charles Schwab Corp achieves a profit margin of 38.00%, meaning it retains $38.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 49.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 19.10% and ROA at 1.97%, the company generates strong returns on invested capital.

Q:What are SCHW's recent growth trends?

Charles Schwab Corp's revenue grew by 15.80% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 38.60% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against CAPITAL MARKETS industry averages for proper context.

Dividend Information

Dividend Per Share

$1.13

Dividend Yield

1.10%

Ex-Dividend Date

May 8, 2026

Dividend Date

May 22, 2026

Q:What dividend income can investors expect from SCHW?

Charles Schwab Corp offers a dividend yield of 1.10%, paying $1.13 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of May 8, 2026.

Q:How reliable is SCHW's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Charles Schwab Corp pays $1.13 per share in dividends against earnings of $5.03 per share, resulting in a payout ratio of 22.47%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for May 22, 2026.

Company Size & Market

Market Cap

$178.7B

Revenue (TTM)

$24.80B

Revenue/Share (TTM)

$13.89

Shares Outstanding

1.74B

Book Value/Share

$24.43

Asset Type

Common Stock

Q:What is SCHW's market capitalization and position?

Charles Schwab Corp has a market capitalization of $178.7B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 1.74B shares outstanding, the company's ownership is widely distributed. As a major player in the CAPITAL MARKETS industry, it competes with other firms in this sector.

Q:How does SCHW's price compare to its book value?

Charles Schwab Corp's book value per share is $24.43, while the current stock price is $101.60, resulting in a price-to-book (P/B) ratio of 4.16. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$120.37

18.47% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for SCHW?

21 analysts cover SCHW with 86% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $120.37 implies 18.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on SCHW?

Current analyst recommendations:7 Strong Buy, 11 Buy, 2 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Jul 17, 2026, 02:09 AM

Technical Indicators

RSI (14-day)

69.10

Neutral

50-Day Moving Average

$92.42

9.93% above MA-50

200-Day Moving Average

$94.59

7.41% above MA-200

MACD Line

3.28

MACD Signal

2.72

MACD Histogram

0.55

Bullish

Q:What does SCHW's RSI value tell investors?

The RSI (Relative Strength Index) for SCHW is currently 69.10, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.

Q:How should traders interpret SCHW's MACD and moving average crossovers?

MACD analysis shows the MACD line at 3.28 above the signal line at 2.72, with histogram at 0.55. This bullish crossover suggests upward momentum is building. The 50-day MA ($92.42) is below the 200-day MA ($94.59), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Jul 17, 2026, 01:15 AM

Charles Schwab Corp (SCHW) Stock