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.
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.