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 (TDA), leading to the formation of a behemoth in the brokerage industry.
As of Jun 30, 2021, the company had 32.3 million active brokerage accounts, 1.6 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in The Charles Schwab Corporation a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2011 would be worth $6,454.08, or a gain of 545.41%, as of October 6, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 279.86% and gold's return of 3.22% over the same time frame.
Analysts are forecasting more upside for SCHW too.
Schwab’s shares have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Strategic acquisitions have reinforced its position as a leading brokerage player, and will be accretive to earnings and also lead to substantial cost savings. Its efficient capital deployment activities reflect a solid balance sheet position. Offering commission-free trading has been leading to rise in client assets and brokerage accounts. This, in turn, will continue improving its trading revenues. However, continued near-zero interest rates with no chance of a hike in the same in the near term pose a major concern. Further, persistently increasing operating expenses will likely hurt profitability to some extent.
Over the past four weeks, shares have rallied 5.30%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. 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 (TDA), leading to the formation of a behemoth in the brokerage industry.
As of Jun 30, 2021, the company had 32.3 million active brokerage accounts, 1.6 million banking accounts and 2.1 million corporate retirement plan participants.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in The Charles Schwab Corporation a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in October 2011 would be worth $6,454.08, or a gain of 545.41%, as of October 6, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 279.86% and gold's return of 3.22% over the same time frame.
Analysts are forecasting more upside for SCHW too.
Schwab’s shares have outperformed the industry over the past year. The company has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters. Strategic acquisitions have reinforced its position as a leading brokerage player, and will be accretive to earnings and also lead to substantial cost savings. Its efficient capital deployment activities reflect a solid balance sheet position. Offering commission-free trading has been leading to rise in client assets and brokerage accounts. This, in turn, will continue improving its trading revenues. However, continued near-zero interest rates with no chance of a hike in the same in the near term pose a major concern. Further, persistently increasing operating expenses will likely hurt profitability to some extent.
Over the past four weeks, shares have rallied 5.30%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.