Bullish Case: Despite recent setbacks, charles schwab continues to attract new accounts and has potential for earnings growth via interest rates and potential new fees[Yahoo]. Zacks Research points out Schwab has outperformed its industry in the past six months (+4.8% vs. -4.4%) and notes potential for margins growth amid high interest rates[Yahoo].


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Bearish Case: Schwab's recent layoffs and branch closures[10news.com, , sfchronicle.com] signify cutbacks and uncertainty. Furthermore, one of Schwab’s top executives sold roughly $174K worth of company stock[uk.investing.com]. Schwab's stock has also been one of the worst performing in the S&P 500 this year[The Wall Street Journal].


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Takeaway: As charles schwab navigates transitions in the financial industry, balancing layoffs and closures with potential moves to remain competitive, the company's future performance will depend on its ability to adapt successfully[10news.com, Yahoo].


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Potential Outcomes:

1. Increased interest rates could lead to margin growth (60%)[Yahoo].

2. Continuing layoffs and closures possibly further hurting Schwab's profitability (30%)[10news.com, sfchronicle.com].

3. Schwab clawing back some losses by instating new fees (10%)[Yahoo].


November 23, 2023


Charles Schwab Forecast

[SCHW]  Charles Schwab
Price Forecast: NEUTRAL    Price Action: MEAN REVERTING (?)



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