SCHW Should I Buy
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Charles Schwab Corp (SCHW) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and growing client base outweigh the short-term technical weakness and market sentiment concerns. Additionally, congress trading data shows a positive bias towards the stock.
The MACD is negatively expanding (-1.112), RSI is neutral at 25.614, and moving averages are converging. The stock is trading near its S1 support level of 95.177, indicating potential downside risk in the short term. However, long-term technical indicators are not strongly bearish.
Strong Q4 financial performance with revenue up 7.81% YoY, net income up 37.86% YoY, and EPS up 38.54% YoY.
Positive analyst sentiment with multiple price target increases, including a high target of $
Congress trading data shows a positive bias with more purchases than sales.
Growing client base with 38.7 million active brokerage accounts and $12.15 trillion in client assets.
Recent stock price weakness, including an 8% drop on February 10, 2026, due to sector-wide concerns about AI's impact on financial services.
Technical indicators suggest short-term bearish momentum.
Neutral trading sentiment from hedge funds and insiders.
In Q4 2025, Charles Schwab reported strong financial growth: revenue increased by 7.81% YoY to $7.17 billion, net income rose by 37.86% YoY to $2.37 billion, and EPS grew by 38.54% YoY to $1.33. Gross margin also improved to 88.39%, up 10.28% YoY.
Analysts are overwhelmingly positive on SCHW, with multiple firms raising price targets in January 2026. The highest target is $138 (TD Cowen), and the lowest is $94 (BofA, with an Underperform rating). Most analysts maintain Buy or Overweight ratings, citing strong net interest income and a solid 2026 outlook.
