What changed
$SCHW — BUY 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $6.2B | EPS $1.43 vs $1.40 🟢
💡 The market is pricing in continued NIM compression and client cash sorting headwinds, but Q1 results show stabilization with a 3-cent EPS beat. Consensus FY2026 EPS of ~$5.80 does not fully reflect the improving interest rate backdrop and expense discipline, creating upward revision potential.
📉 Reward/risk: 2.06:1
🏢 Business Quality: 8/10 - Leading brokerage and custodian with massive scale, $9.7T client assets, diverse revenue streams, and strong brand loyalty.
📊 Valuation: fair - P/E 17.9x at historical median; P/TBV ~4.6x slightly above 5-year average; reverse DCF implies modest undervaluation assuming 5% long-term...
🔮 Catalyst: Q2 2026 earnings release (est. July 2026) and management commentary on NIM trajectory
📊 Our read: BUY. Full analysis →
https://stockduty.xyz/s/SCHW0623