The shares of SCHW managed to finish on the top after two long years, and are on course to finish this year with a bang. They have recovered close to 80% of the lows that they had faced in Q1, and are just 18% away from recording an all-time high. Incidentally, the previous all-time high was recorded all the way back in 2018. This incredible growth in the traders of retail has been something of a silver lining for brokers similar to SCHW. Now, with trading being entirely commission-free, they have turned out to be one of the names if one were to look for new traders. Since there had been an acquisition of just one big brokerage firm the previous year, SCHW is looking to capitalize on that.
The total number of assets for their clients has already increased by about 34% in October itself, and they are just a few million dollars away from $6 trillion. Yet, SCHW has failed in growing out the bottom line in this perilous year. The earnings report of the company for Q2 shows the EPS in black- and yet the revenue was still down by around 9%. Nonetheless, Wall Street is still believing in the company to get back on its feet and ensure the reliable growth that they have always been famous for.
Recovery Potential of the SCHW
For those investors thinking that they have missed out on the opportunities, there are still several reasons why you should be excited.
It has come to news that Wells Fargo has already upgraded the shares of SCHW to Overweight, which means that there is a massive recovery in play here. This could prove to be extremely potent as most companies that were quite behind the tech companies are finding their footing with the COVID vaccine within their grasp.