Retail investing company Charles Schwab posted fourth quarter earnings that surpassed analysts’ expectations. This is Schwab’s first earnings report following its $26 billion acquisition of rival TD Ameritrade.
The company’s adjusted earnings came in at 74 cents per share, beating the 71 cents per share expected by analysts polled by Refinitiv.
Revenue of $4.18 billion was also higher than the forecast $4.108 billon.
Total client assets for Schwab increased to a record $6.69 trillion as of the end of 2020, which reflects a 66% growth year-over-year – boosted by acquired TD Ameritrade assets.
Schwab added 15.77 million new clients in the fourth quarter, including 14.5 million new brokerage accounts from the TD Ameritrade merger.
The company’s daily average trades rose to 5.8 million in the fourth quarter, a record high.
Trading revenue surged +88% to $1.4 billion
SCHW's Aroon Indicator triggered a bullish signal on December 03, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 306 similar instances where the Aroon Indicator showed a similar pattern. In of the 306 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The 50-day moving average for SCHW moved above the 200-day moving average on November 19, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SCHW advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for SCHW moved out of overbought territory on December 02, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where SCHW's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on December 03, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SCHW as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SCHW turned negative on December 02, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SCHW declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SCHW broke above its upper Bollinger Band on November 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SCHW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.156) is normal, around the industry mean (5.702). P/E Ratio (28.492) is within average values for comparable stocks, (34.442). Projected Growth (PEG Ratio) (1.234) is also within normal values, averaging (2.610). Dividend Yield (0.014) settles around the average of (0.030) among similar stocks. P/S Ratio (7.032) is also within normal values, averaging (112.495).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of securities brokerage and other financial services
Industry InvestmentBanksBrokers