SCHW Should I Buy
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Charles Schwab Corp (SCHW) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and congressional buying activity outweigh the minor technical and options-based concerns. Despite the recent price dip, the stock's fundamentals and long-term growth potential make it a solid investment opportunity.
The MACD is positive at 0.128, indicating a bullish trend, though it is contracting. RSI is neutral at 40.12, suggesting no overbought or oversold conditions. Moving averages are converging, and the current price is near the pivot level of 94.646, with support at 92.228 and resistance at 97.064. Overall, the technical indicators suggest a neutral to slightly bullish outlook.
Strong financial performance in Q4 2025, with revenue up 7.81% YoY, net income up 37.86% YoY, and EPS up 38.54% YoY.
Positive analyst sentiment, with multiple firms raising price targets and maintaining Buy or Overweight ratings.
Congressional trading data shows a positive bias, with 3 purchase transactions and only 2 sales in the last 90 days.
Recent insider selling activity, with Officer Woolway Paul Vinten planning to sell $4.17 million worth of shares.
Short-term bearish sentiment in options data, with a high put-call ratio and elevated implied volatility.
Recent market weakness, with SCHW down 0.88% in regular trading and 1.92% in pre-market, alongside a broader S&P 500 decline of 1.0%.
In Q4 2025, Charles Schwab reported strong financial growth: revenue increased by 7.81% YoY to $7.17 billion, net income grew by 37.86% YoY to $2.37 billion, EPS rose by 38.54% YoY to $1.33, and gross margin improved by 10.28% to 88.39%. These metrics highlight robust profitability and operational efficiency.
Analysts are highly positive on SCHW, with multiple firms raising price targets recently. Barclays, UBS, Truist, Deutsche Bank, and TD Cowen all increased their targets, with the highest being $138 from TD Cowen. Most analysts maintain Buy or Overweight ratings, citing strong net interest income and a solid 2026 outlook. However, BofA remains cautious with an Underperform rating and a lower price target of $94.
