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Top Stock Picks for Week of December 16, 2019

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Charles Schwab Corporation (SCHW - Free Report) , is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services. Shares of Schwab have outperformed the industry over the past three months. Its earnings have surpassed the Zacks Consensus Estimate in three of the trailing four quarters. However, its 2019 earnings estimates have been revised nearly 1% upward over the past 60 days. Therefore, given the strong fundamentals and positive estimate revisions, the stock has upside potential. The company’s planned acquisition of TD Ameritrade will create a behemoth online brokerage industry with more than $5 trillion in client assets. Also, agreement to buy USAA’s Investment Management Company, a strong balance sheet position and improving operating efficiency bode well for the future.

Planet Fitness (PLNT - Free Report) , is one of the leading franchisors and operators of fitness centers in the United States. Shares have outperformed the industry in the past year. The momentum is likely to continue as investors are impressed with better-than-expected earnings trend and robust same-store sales performance. During third-quarter 2019, the company posted the 51st straight quarter of positive same-store sales. The company has also impressed investors with an earnings beat trend over the past several quarters. In the trailing four quarters, its bottom line surpassed the Zacks Consensus Estimate, the average being 5.5%. Meanwhile, increase in net member and higher average royalty rate have been driving comparable sales. Additionally, increased Black Card pricing bodes well.In an effort to expand its presence, Planet Fitness has been focusing on strategic partnerships and international expansions. 

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