Why Charles Schwab Stocks Are Rising Today

Jiaxin (name) financial management(Charles Schwab ) (NYSE: SCHW)The company realized solid earnings and said it is committed to returning capital to曏 shareholders. Investors liked the tone of the report, and shares were up about 4% as of 11:30 a.m. ET.

Strong Markets Drive Asset Growth

Schwab has long been one of the best-known retail brokers, a position reinforced by the acquisition of TD Ameritrade in 2020. But over the past few years, the firm's main focus has been on whole-carrier trading, an endeavor that appears to be nearing its conclusion.

For the quarter, the company reported earnings of $0.74 per share on revenue of $4.74 billion, slightly ahead of Wall Street estimates of $0.73 per share on sales of $4.72 billion. Revenue was down 71 TP3T and net income was down 151 TP3T year-over-year, but management believes there will be growth in the future.

"Against a backdrop of improving macroeconomic conditions, clients entrusted us with $96 billion in core net new assets, including $45 billion in March alone," said Walt Bettinger, mat executive officer, in a statement." At the same time, solid investor sentiment contributed to the opening of more than 1 million new brokerage accounts during the quarter.

Is Charles Schwab worth buying after the quarterly industry merit announcement?

Last year was a turbulent one for the brokerage, but 2024 has started strongly with an uptick in business. In addition, Charles Schwab is cutting back on higher-cost debt, which it hopes will help it improve its net interest margin to 3% by the end of next year.

Looking ahead, the company appears more interested in returning capital to shareholders than in making further acquisitions. Schwab's management said it intends to resume opportunistic share purchases as "temporary headwinds continue to abate."

Brokerages tend to ebb and flow with interest in the stock market and its impact on trading volume, but Schwab has emerged as a long-term winner. For those looking for exposure to retail trading, Schwab is a solid investment option.

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Charles Schwab is an advertising persona partner of The Ascent, a Motley Fool company. lou Whiteman has no position in any of the stocks mentioned above. the Motley Fool has a holding in Charles Schwab, which it recommends. the Motley Fool recommends the following options: SHORT The Motley Fool recommends the following options: Short Charles Schwab June 2024 $65 puts The Motley Fool has a disclosure policy.

Why is Charles Schwab stock rising today?