Is Charles Schwab Stock Outperforming the Dow Jones?

Is Charles Schwab Stock Outperforming the Dow Jones?
Is Charles Schwab Stock Outperforming the Dow Jones?

Charles Schwab Corporation (SCHW), headquartered in Westlake, Texas, operates as a financial holding company. With a market capitalization of $161.2 billion, Charles Schwab offers diverse services, including wealth management, securities brokerage, banking, asset management, custody and financial advisory.

Companies worth $10 billion or more are generally described as “large-cap stocks.” Charles Schwab fits this project perfectly. Given that the company owns billions in client assets and employs more than 32,000 people, its valuation above this mark is not surprising. The company serves more than 36 million active brokerage accounts and strives to disrupt traditional Wall Street approaches by finding ways to improve its clients’ investing experience.

SCHW reached its all-time high of $99.59 on July 29 and is currently trading 7.8% below that high. Meanwhile, SCHW has fallen 5.6% over the past three months, notably lagging the Dow Jones Industrial Average ($DOWI)’s 4.4% rally over the same time period.

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www.barchart.com

However, Charles Schwab has significantly outperformed over the long term. SCHW shares have soared 24% so far this year and gained 11.6% over the past year, compared to the Dow’s 11.5% gains in 2025 and 5.7% returns over the past 52 weeks.

SCHW stock has traded above its 200-day moving average since mid-April and fell below its 50-day moving average in mid-November, underscoring its overall bullish trend and recent slowdown.

www.barchart.com
www.barchart.com

Despite reporting better-than-expected results, Charles Schwab’s share prices saw a 98 basis point drop in the trading session following the release of its third-quarter results on October 16. The company posted a solid 17% increase in client assets compared to the prior-year quarter, reaching $11.6 trillion. Meanwhile, it generated $137.5 billion in new core net assets in the third quarter, bringing year-to-date asset accumulation to $355.5 billion, a 41% year-on-year increase.

Driven by these positives, SCHW’s overall net revenue grew 26.6% year over year to $6.1 billion, beating Street expectations by 3%. Meanwhile, its adjusted EPS soared 70.1% year over year to $1.31, beating consensus estimates by 5.7%. After the initial drop, SCHW stock remained in positive territory for the next three trading sessions.

Despite its strong performance, Charles Schwab has underperformed its peer Morgan Stanley (MS), with gains of 33.6% in 2025 and returns of 27.9% over the past 52 weeks.

Among the 23 analysts covering SCHW stock, the consensus rating is “Moderate Buy.” At the time of writing, its average price target of $112.30 suggests 22.3% upside potential from current price levels.

On the date of publication, Aditya Sarawgi had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com

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