After investors dumped Charles Schwab's (SCHW) stock in July, sentiment abruptly changed on Oct. 15, 2024. The company unexpectedly posted strong results in the third quarter. SCHW stock may catch up with Robinhood's performance (HOOD).
Schwab earned $0.77 a share non-GAAP. Revenue increased by 5.2% Y/Y to $4.85 billion.
The firm benefited from a pick-up in client activity in September. Furthermore, further evidence of trading activity normalizing is being seen. In combination with organic growth and variability, business is returning to healthy levels.
Looking ahead, Schwab expects to control its expense growth in the mid-single-digit percentage. Revenue will improve as Schwab grows its client base in the 5% to 7% range. Ameritrade clients coming to Schwab is a natural tailwind. More importantly, the attrition rate is lower than expected. This will contribute positively to net new assets from Ameritrade clients.
Related Investments
Robinhood is an attractive investment. On October 9, the company attracted $10 billion in retirement savings.
For Investors seeking exposure to Canadian banks, consider TD Bank (TD). The stock peaked at $65 and closed at $56.35 last week. It will pay a fine of over $3 billion concerning an anti-money laundering settlement investigation.
