SCHW: One of the worse performers in 2023. Cautiously $LONG
Main Idea/Insider "Alpha": Many large tech companies like
GOOG
and
META
use Schwab as their vendor to manage RSU grants. This makes me think Schwab is a great long-term investment and will continue to have good cash flow, assets under management, etc.
In the idea above, I present a bull case and a bear case. At worse, this will be neutral and you can sell options against your position and/or collect dividends.
In high interest rate environments, usually "banks" do well, and so schwab will benefit from halo effect if we see finance stocks continue to do well over the long-term.
Other data points
This website seems bullish as well:
simplywall.st/stocks...-schw/charles-schwab
REWARDS
RISK ANALYSIS
GOOG
and
META
use Schwab as their vendor to manage RSU grants. This makes me think Schwab is a great long-term investment and will continue to have good cash flow, assets under management, etc. In the idea above, I present a bull case and a bear case. At worse, this will be neutral and you can sell options against your position and/or collect dividends.
In high interest rate environments, usually "banks" do well, and so schwab will benefit from halo effect if we see finance stocks continue to do well over the long-term.
Other data points
This website seems bullish as well:
simplywall.st/stocks...-schw/charles-schwab
REWARDS
- Trading at 12.7% below our estimate of its fair value
- Earnings are forecast to grow 14.51% per year
- Earnings grew by 10.8% over the past year
- Pays a reliable dividend of 1.81%
- Analysts in good agreement that stock price will rise by 35.2%
RISK ANALYSIS
- Significant insider selling over the past 3 months
- If greedy: Wait until $50 or $46 per share.
VOLUME
- Volume is pretty low, so I could imagine some folks picking this up at these levels for "accumulation"