Valued at a market cap of $160.1 billion, The Charles Schwab Corporation (SCHW) is a leading financial services company that offers a comprehensive range of services, including securities brokerage, wealth management, banking, asset management, custody, and financial advisory services. The Westlake, Texas-based company caters to both individual and institutional clients.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and SCHW fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the capital markets industry. The company is renowned for pioneering discount brokerage services and was among the first to offer commission-free trading, making investing more accessible to the masses. Its strengths lie in its client-first philosophy, low-cost investment model, and broad range of financial services. 

This financial services giant is currently trading 1.9% below its 52-week high of $89.85, reached on May 20. SCHW has soared 10.8% over the past three months, outpacing the S&P 500 Index’s ($SPX) marginal downtick during the same time frame.

In the longer term, SCHW has surged 20.2% over the past 52 weeks, outperforming SPX’s 12.5% uptick over the same time frame. Moreover, on a YTD basis, shares of SCHW are up 19.1%, compared to SPX’s slight rise. 

To confirm its bullish trend, SCHW has been trading above its 200-day moving average since mid-October, 2024, with slight fluctuations, and has remained above its 50-day moving average since late April. 

On Apr. 17, SCHW’s shares closed up marginally after its better-than-expected Q1 earnings release. Its top line improved 18.1% year-over-year to a record $5.6 billion and surpassed the consensus estimates. Growth in revenue across all fronts, fueled by robust organic growth, increased trading volumes, strong managed investing net inflows, and sustained bank lending momentum, aided the results. Furthermore, its adjusted EPS grew 40.5% from the year-ago quarter to $1.04 and topped the analyst expectations by 4%. 

SCHW has lagged behind its rival, Morgan Stanley’s (MS) 31.2% rise over the past 52 weeks. However, the stock has outpaced MS’ 2.1% gain on a YTD basis. 

Given SCHW’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 22 analysts covering it, and the mean price target of $90.62 suggests a 2.8% premium to its current price levels.