
Charles Schwab (SCHW) Stock Forecast & Price Target
Charles Schwab (SCHW) Analyst Ratings
Bulls say
Charles Schwab's robust engagement with retail trading customers is evidenced by daily average trades (DATs) of approximately 7.4 million, reflecting a year-over-year increase of about 30%. Furthermore, the firm has demonstrated impressive growth in pledged asset lending (PAL), with a quarterly increase of 11% and a remarkable 49% year-to-date surge, contributing to total PAL of $23.4 billion. Additionally, Schwab's capital ratios have improved significantly, with an adjusted Tier 1 leverage ratio rising 60 basis points year-over-year to 7.3%, which enhances the firm's capacity for future buybacks while maintaining a strong revenue growth outlook driven by net interest income inflection and securities book repricing.
Bears say
The negative outlook on Charles Schwab's stock is primarily driven by modest declines in net interest income (NII) and the expectation that consensus forecasts do not reflect the impact of a lower rate curve. Additionally, projections for 2026 indicate a slight decline, compounded by recent trends showing net new asset (NNA) flows falling below 5%, which suggests ongoing challenges in client asset growth. Furthermore, potential macroeconomic disruptions, stagnant cash levels, and a significant increase in long-term interest rates pose substantial downside risks to the firm's financial health and capital return timelines.
This aggregate rating is based on analysts' research of Charles Schwab and is not a guaranteed prediction by Public.com or investment advice.
Charles Schwab (SCHW) Analyst Forecast & Price Prediction
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