The Market Is Too Optimistic On Charles Schwab (Archive)

Wall Street keeps overestimating Schwab’s earnings power despite clear fundamental headwinds.

The Market Is Too Optimistic On Charles Schwab (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

  • My views on Charles Schwab have been quite balanced, and my last 'neutral/hold' rating has worked out. But now I am changing my stance based on new data.
  • On the positive side, cash sorting trends are improving.
  • But growth in core net new assets is unusually low.
  • Asset management business is punching below its weight.
  • The consensus view is set for disappointment.

Read the full article here.

Disclosures and Disclaimers

Past performance ≠ future results. Not investment advice. See full Disclaimer.