We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
If You Invested $1000 in The Charles Schwab Corporation a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in The Charles Schwab Corporation (SCHW - Free Report) ten years ago? It may not have been easy to hold on to SCHW for all that time, but if you did, how much would your investment be worth today?
The Charles Schwab Corporation's Business In-Depth
With that in mind, let's take a look at The Charles Schwab Corporation's main business drivers.
Headquartered in San Francisco, CA, The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include Charles Schwab & Co. (securities broker-dealer), Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab’s exchange-traded funds) and Charles Schwab Bank (a federal savings bank).
Schwab provides financial services to individuals and institutions through two reportable segments – Investor Services and Advisor Services.
The Investor Services segment (constituting 71.8% of net revenues in 2020) includes Schwab’s retail brokerage and banking operations as well as retirement plan and corporate brokerage services. Through this segment, the company offers research, analytic tools, online portfolio planning tools, performance reports, market analysis and educational material to its clients.
The Advisor Services segment (28.2%) offers custodial, trading and support services to independent investment advisors. It also provides retirement business services to independent retirement plan advisors and record-keepers.
In May 2020, Schwab acquired certain of assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts. In June, it acquired Motif’s technology and intellectual property assets, while in July it acquired Naples, FL-based Wasmer, Schroeder & Company. In October, the company completed the buyout of TD Ameritrade, leading to the formation of a behemoth in the brokerage industry.
As of Dec 31, 2020, the company had 29.6 million active brokerage accounts, 1.5 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For The Charles Schwab Corporation, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2011 would be worth $3,619.58, or a 261.96% gain, as of March 15, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 202.34% and the price of gold increased 18.51% over the same time frame in comparison.
Analysts are forecasting more upside for SCHW too.
Schwab’s shares have outperformed the industry over the past six months. The company has a decent earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Opportunistic acquisitions over the past year have strengthened Schwab’s position as a leading brokerage player, and will be accretive to earnings in the upcoming quarters. Offering commission-free trading has been leading to higher client assets and rise in brokerage accounts, which in turn is improving the company's market share. Its efficient capital deployment activities reflect a solid balance sheet position. However, continued near-zero interest rates and no chance of any increase in the same in the near term remains a major concern. Also, persistently increasing costs will hurt profitability to some extent.
The stock has jumped 20.96% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2021; the consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in The Charles Schwab Corporation a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in The Charles Schwab Corporation (SCHW - Free Report) ten years ago? It may not have been easy to hold on to SCHW for all that time, but if you did, how much would your investment be worth today?
The Charles Schwab Corporation's Business In-Depth
With that in mind, let's take a look at The Charles Schwab Corporation's main business drivers.
Headquartered in San Francisco, CA, The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include Charles Schwab & Co. (securities broker-dealer), Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab’s exchange-traded funds) and Charles Schwab Bank (a federal savings bank).
Schwab provides financial services to individuals and institutions through two reportable segments – Investor Services and Advisor Services.
The Investor Services segment (constituting 71.8% of net revenues in 2020) includes Schwab’s retail brokerage and banking operations as well as retirement plan and corporate brokerage services. Through this segment, the company offers research, analytic tools, online portfolio planning tools, performance reports, market analysis and educational material to its clients.
The Advisor Services segment (28.2%) offers custodial, trading and support services to independent investment advisors. It also provides retirement business services to independent retirement plan advisors and record-keepers.
In May 2020, Schwab acquired certain of assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts. In June, it acquired Motif’s technology and intellectual property assets, while in July it acquired Naples, FL-based Wasmer, Schroeder & Company. In October, the company completed the buyout of TD Ameritrade, leading to the formation of a behemoth in the brokerage industry.
As of Dec 31, 2020, the company had 29.6 million active brokerage accounts, 1.5 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For The Charles Schwab Corporation, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in March 2011 would be worth $3,619.58, or a 261.96% gain, as of March 15, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
The S&P 500 rose 202.34% and the price of gold increased 18.51% over the same time frame in comparison.
Analysts are forecasting more upside for SCHW too.
Schwab’s shares have outperformed the industry over the past six months. The company has a decent earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in two of the trailing four quarters. Opportunistic acquisitions over the past year have strengthened Schwab’s position as a leading brokerage player, and will be accretive to earnings in the upcoming quarters. Offering commission-free trading has been leading to higher client assets and rise in brokerage accounts, which in turn is improving the company's market share. Its efficient capital deployment activities reflect a solid balance sheet position. However, continued near-zero interest rates and no chance of any increase in the same in the near term remains a major concern. Also, persistently increasing costs will hurt profitability to some extent.
The stock has jumped 20.96% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2021; the consensus estimate has moved up as well.