Home Returns from Charles Schwab Robo Advisor are High, but Investing Directly in its Stock Is lucrative
News, Stocks

Returns from Charles Schwab Robo Advisor are High, but Investing Directly in its Stock Is lucrative

Charles Schwab Corporation (NYSE: SCHW) is an asset management company that help investors in generating big returns by investing in multiple asset classes. However, its own shares that trade on U.S. stock market also offers a good investment opportunity for the long-term investors.

Returns from Charles Schwab...

Source: Morningstar.com

Shares of this robo advisor rose more than 45% in the last three years alone, compared to returns of 33% from its robo advisor services in the last two years. Its Schwab Intelligent Portfolio stands around $20 billion in assets, making it the second largest robo advisors around the globe.

Beside robo advisor, Charles Schwab Corporation provides wealth management, banking, securities brokerage, asset management, financial advisory services, and custody services. Combined with assets under its robo advisors, its total client assets reached a record $3.59 trillion in March 2019, up 8% year-over-year.”

After hitting an all-time high of $60 a share in mid-2018, Charles Schwab Corporation shares started falling steadily only due to the broader market uncertainty. Its shares are currently trading close to $43 – with the 52-week trading range of $37.83 – $60.22. The market pundits believe that the drop in its share is presenting a solid buying opportunity for long-term investors.

The average price target for its stock is close to $52 per share. The sustainable and significant growth in its financial numbers is the biggest catalysts for its share price gains.

Source: Earnings Release

The company has generated a robust 14% revenue growth in the latest quarter; it’s all other financial matrices also highlighted significant growth from prior periods.

Its net income rose 23% year over year in the first quarter and earnings per share grew 25%. The company expects to generate similar growth in the following quarters – which would improve investor’s confidence along with providing a boost to its share price performance.  Therefore, investing directly in Charles Schwab stock is worth considering compared to returns from using its robo advisor services.

 

Over the years Schwab has become one of the most important Stock Brokers in the world, this adds an extra level of difficulty to this scenario. Should you invest in the stocks of the Stock Broker or use the Stock Broker to buy other stocks. It might sound like a riddle at this point but it is much simpler than that.

Take into account that there is not an answer that would fit all investors, this a decision that will depend on your risk appetite and also your long term goals as trader and investor.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission on real stocks

Rating

64 traders signed up today

Visit Now

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account

Siraj Sarwar

Siraj Sarwar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.