Key statistics

Is SCHW a good stock to buy in 2026?

SCHW’s P/E ratio of 16.96x appears favorable compared to the sector average of 20x, suggesting a potentially attractive SCHW valuation. The discounted cash flow (DCF) model indicates a fair value of $94.94, presenting a 3.7% upside from its current price. With 58.0% of analysts rating SCHW stock a “Buy,” the consensus is largely positive, suggesting that many believe is SCHW a good stock to consider.

2026 SCHW price scenarios

Based on analyst consensus of $119.11 from 50 analysts. Not a prediction by Alert Invest.

About The Charles Schwab Corporation (SCHW)

The Charles Schwab Corporation, together with its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates in two segments, Investor Services and Advisor Services; The Investor Services segment provides retail brokerage, investment advisory, banking and trust, retirement plan, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor and mutual fund clearing services, as well as compliance solutions.

The Charles Schwab Corporation is led by CEO Richard Andrew Wurster, overseeing its broad operations as a dominant player in the financial services sector. With a robust team of approximately 32,100 employees, Schwab’s distinctive strengths lie in its vast client base, comprehensive suite of wealth management and brokerage services, and its strong brand recognition. The company has successfully cultivated a reputation for innovative technology and accessible financial solutions, attracting both retail investors and independent financial advisors.

SCHW competitive moat and business analysis

The Charles Schwab Corporation (SCHW) exhibits a robust competitive advantage, primarily anchored by its impressive net margin of 33.26%. This strong profitability metric underscores the company’s efficient operations and pricing power within the Financial – Capital Markets industry. While Return on Equity (ROE) and Return on Invested Capital (ROIC) are N/A from the provided data, the high net margin suggests effective capital deployment in relation to its revenue generation. SCHW’s substantial scale and integrated service model, offering everything from brokerage to banking and advisory services, create significant switching costs for clients, reinforcing its market position.

The company’s revenue streams primarily stem from its core operations in wealth management, securities brokerage, banking, and asset management. As of the fiscal year 2025, ended 2025-12-31, The Charles Schwab Corporation’s revenue generation is broadly diversified across these segments, providing a stable financial foundation. The provided data indicates segment breakdown by (‘symbol’, ‘SCHW’), (‘fiscalYear’, 2025), (‘period’, ‘FY’), (‘reportedCurrency’, ‘USD’), (‘date’, ‘2025-12-31’) and no geographical breakdown is available. This suggests a strong reliance on its diverse product offerings within its primary markets, allowing it to capture various revenue opportunities from its extensive client base.

Looking at the moat trend, SCHW’s revenue growth of 6.4% indicates a healthy expansion, further solidifying its competitive position. This growth, coupled with its consistent high margins, suggests that the company is effectively fending off competition and expanding its market share. The transcript for the latest earnings call is not available, which might offer further color on management’s specific strategies to deepen its moat. However, its history of strategic acquisitions and continuous investment in technology points towards a forward-looking approach to maintain and enhance its market leadership.

When evaluating SCHW stock against its peers, The Charles Schwab Corporation stands out in several aspects within the Financial Services sector. Compared to banking giants like SCHW vs BAC (Bank of America), Schwab offers a more specialized focus on investment and wealth management, leading to different risk-reward profiles. Against asset managers such as SCHW vs BLK (BlackRock), Schwab’s direct-to-consumer and advisor platforms provide a broader market reach. While firms like SCHW vs BX (Blackstone) focus heavily on alternative investments, Schwab’s model prioritizes accessible, broad-market financial services, appealing to a wider spectrum of investors seeking comprehensive solutions.

The Charles Schwab Corporation analyst rating

Based on 50 analysts. 58.0% rate SCHW Buy or Strong Buy.

A 58.0% “Buy” rating from 50 analysts is generally considered a strong positive signal for a large-cap Financial Services company like SCHW, indicating significant confidence in its future performance. This level of consensus suggests that many professional investors view SCHW stock favorably relative to its peers and the broader market.

Is SCHW undervalued or overvalued?

When assessing SCHW valuation, the P/E ratio of 16.96x provides a strong indicator. This is notably below the Financial – Capital Markets sector average of 20x, suggesting that SCHW stock might be trading at a relative discount compared to its industry peers. This could appeal to value-oriented investors seeking entry into a well-established company at a potentially attractive price point.

Further supporting this perspective, the Discounted Cash Flow (DCF) fair value stands at $94.94, which represents a 3.7% upside relative to the current price. While not a massive undervaluation, it implies that the fundamental cash-generating capabilities of The Charles Schwab Corporation justify a slightly higher share price. This intrinsic value assessment, combined with the favorable P/E ratio, indicates that SCHW could be considered fairly valued to slightly undervalued at current levels.

SCHW financial health & key metrics

For value investors, SCHW stock presents a compelling profile with a P/E ratio of 16.96x, appearing undervalued relative to the sector average of 20x. The company boasts an excellent net margin of 33.26%, highlighting strong profitability. While ROE/ROIC data is N/A, the healthy debt-to-equity ratio of 0.67x signals solid financial strength. The DCF fair value of $94.94 suggests the stock is currently trading close to its intrinsic worth, offering a potential margin of safety. The main area for caution is the weak FCF yield of 1.57%, which may warrant closer examination for those prioritizing cash generation. Overall, SCHW offers a blend of value and profitability that could be attractive.

The Charles Schwab Corporation earnings history & next report

The Charles Schwab Corporation reported EPS of $1.43, beating estimates by 2.14%. Next earnings: 2026-07-17 with EPS estimate of $1.46.

As The Charles Schwab Corporation approaches its next earnings report on 2026-07-17, with an estimated EPS of $1.46, investors will be keenly watching several key factors. Beyond simply meeting or beating the EPS estimate, attention will be paid to trends in client asset growth, net interest margin performance amidst the current interest rate environment, and any updates on integration efforts following recent acquisitions. Furthermore, management commentary on future outlook, particularly regarding client engagement, technological investments, and market conditions impacting brokerage and advisory revenues, will be crucial for assessing the ongoing health and growth trajectory of SCHW stock.

SCHW daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

SCHW insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent SCHW analyst rating changes

The Charles Schwab Corporation stock news today

How does SCHW compare to its peers?

Understanding how SCHW stock performs relative to its direct competitors is essential for a comprehensive investment perspective. The Charles Schwab Corporation operates within a dynamic Financial Services sector, competing with a range of large banks, asset managers, and other financial institutions. Comparing key metrics and business models against these peers helps to clarify SCHW’s competitive positioning and potential for future growth.

FAQ — The Charles Schwab Corporation (SCHW) stock