The Impact of a Rate Cap on Credit Card Rewards
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Barron's
Trump's Proposal: President Donald Trump proposed capping credit-card interest rates at 10%, which negatively impacted the stocks of card issuers.
Legislative Challenges: Experts believe that Congress would need to pass legislation for the proposal to be enacted, a process that has faced difficulties in the past.
Market Reaction: The announcement led to a decline in the stock prices of credit card companies, indicating investor concern over the potential impact of the proposal.
Expert Insight: Matt Schulz from LendingTree suggests that the current political climate may make this proposal feel different from previous attempts that lacked traction.
Analyst Views on SCHW
Wall Street analysts forecast SCHW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SCHW is 116.64 USD with a low forecast of 91.00 USD and a high forecast of 148.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
14 Buy
1 Hold
1 Sell
Strong Buy
Current: 104.050
Low
91.00
Averages
116.64
High
148.00
Current: 104.050
Low
91.00
Averages
116.64
High
148.00
About SCHW
The Charles Schwab Corporation is a savings and loan holding company. The Company, through its subsidiaries, engages in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments: Investor Services, and Advisor Services. The Investor Services segment provides retail brokerage, investment advisory, and banking and trust services to individual investors, and retirement plan and business services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking and trust, and support services to independent registered investment advisors (RIAs), independent retirement advisors, and recordkeepers. Its products and services include brokerage, mutual funds, exchange-traded funds (ETFs), managed investing solutions, alternative investments, banking, and trust.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
