Should I buy Charles Schwab stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Charles Schwab for over three years. Every month, hundreds of thousands of users in the United States rely on us to analyze market trends and highlight the best investment opportunities. Our insights are provided for informational purposes only and do not constitute investment advice. Consistent with our ethical charter, we have never been, and will never be, compensated by Charles Schwab.

What is Charles Schwab?

How much is Charles Schwab stock?

The price of Charles Schwab stock is rising this week. As of today, SCHW is trading at $81.51, with a 24-hour gain of +0.14% and a weekly decrease of -1.96%. The company boasts a market capitalization of $148.02 billion and an average three-month daily volume of 12.52 million shares. Its current P/E ratio stands at 24.70, supported by a dividend yield of 1.32% and a stock beta of 1.02. With a solid blend of earnings growth and market stability, Schwab remains a notable option for investors mindful of both opportunity and volatility.

Our full analysis on Charles Schwab stock

After a rigorous review of Charles Schwab’s Q1 2025 financial statements, an in-depth exploration of its three-year stock trajectory, and integration of analytical inputs from our proprietary models—including financial, technical, and sector-based comparatives—the outlook for SCHW appears increasingly promising. Schwab’s ability to combine strong operating momentum with a resilient brand has attracted renewed attention from institutional and individual investors alike. So, why might Charles Schwab stock once again become a strategic entry point into the financial services sector in 2025?

Recent Performance and Market Context

Charles Schwab’s stock ($81.51 as of May 2, 2025) has demonstrated resilience and adaptability in a challenging financial landscape. Despite modest weekly volatility (-1.96% over the last five sessions), the six-month gain stands at a robust +14.90%, with the 12-month advance of +9.31% comfortably outpacing the S&P 500 Financials sector. Market capitalization has expanded to $148 billion, reflecting both scalability and the confidence of a broad institutional investor base.

Several factors stand out in 2025:

• Record-Setting Quarter: Schwab’s Q1 2025 results surprised on the upside, with both revenue ($5.6 billion, +18% YoY) and net income ($1.9 billion) shattering previous records.
• Dividend Growth: The 8% dividend hike (to $0.27 quarterly) underlines management’s confidence in forward earnings visibility and capital discipline.
• Positive Analyst Outlook: Consensus 12-month target has edged up to $89.10 (+~9% upside), reflecting optimism for continued operational outperformance.

Broadly, Schwab operates in a macro environment that is steadily improving. Fading recession fears, stabilizing interest rates, and surging retail participation are all supportive of asset-gathering firms. The sector benefits further from robust M&A activity and digital innovation trends, which Schwab is well-placed to harness.

Technical Analysis

Recent technical signals for SCHW are nuanced yet overall constructive—particularly for medium- and long-term positioning. Key readings:

• Relative Strength Index (RSI): The 14-day RSI sits at 48.5, squarely in neutral territory, implying neither overbought nor oversold conditions. This positions SCHW as technically flexible, with room for upward moves.
• MACD: A value of 0.34 suggests a mild caution may be warranted for short-term traders, but the absence of a pronounced bearish divergence indicates limited downside risk.
• Moving Averages: The current price is above the 5-day and 200-day moving averages (bullish for short and long-term), though just below the 20- and 50-day averages—signaling consolidation before a potential bullish breakout.
• Support and Resistance: Immediate support at $80.98 has shown resilience, while $82.07 (short-term resistance) and $84.50 (52-week high) represent critical levels; a decisive close above resistance would likely unlock a new leg higher.

Importantly, price action suggests the recent pullback is more corrective than structural, offering disciplined investors a timely entry point in anticipation of a technical reversal.

Fundamental Analysis

Charles Schwab’s fundamentals are among the strongest in the financial services sector:

• Revenue & Profitability: Q1 2025 saw record-high revenues (+18% YoY) and a 41% YoY leap in adjusted EPS ($1.04). Such growth is rare for a mature capital markets firm and underscores both operational leverage and a sticky client base.
• Asset Flows: Core net new assets of $137.7 billion (+44% YoY) signal continued market share gains, with 1.2 million new brokerage accounts boosting total active accounts to a staggering 37 million.
• Net Interest Margin: Sequential improvement to 2.53% highlights prudent asset-liability management in a shifting yield environment.
• Valuation: With a TTM P/E of 24.7 and a 1.32% dividend yield, Schwab trades at a premium to its peer group—justified by its consistent outperformance, faster growth, and superior risk profile. The implied PEG and P/S ratios continue to be reasonable when benchmarked against U.S. capital markets leaders.

Structurally, Schwab categorically stands out for its:

• Brand Strength and Scale: Almost $10 trillion in client assets, #1 broker ranking for 2025, and a broad product suite.
• Revenue Diversification: Balanced exposure between brokerage, banking, and asset management smooths cyclicality and enhances capital stability.
• Capital Position: Aggressive but prudent return of capital through both dividends and share buybacks, while maintaining robust capital ratios.

Altogether, these factors support a narrative of sustainable growth and efficient capital allocation—traits highly valued by sophisticated investors.

Volume and Liquidity

Market liquidity in SCHW stock remains exemplary, underpinning its appeal for both institutional and retail investors:

• Average Daily Trading Volume: 12.52 million shares traded daily guarantees tight spreads and ease of execution even for significant orders.
• Public Float: With 1.71 billion shares freely floating, price discovery is efficient and the stock’s valuation remains dynamically responsive to new information.

Elevated trading volumes following earnings announcements and sector news are a testament to market confidence and increasing engagement among investors. This liquidity reduces transaction costs and makes Schwab a compelling vehicle for both trading and longer-term accumulation.

Catalysts and Positive Outlook

Looking ahead, Schwab is well-positioned to benefit from several near- and medium-term drivers:

• Product Innovation: The expected launch of spot crypto trading could add a new growth vector and address rising investor demand for digital assets.
• Technology Investments: Ongoing digital transformation is enhancing operational efficiency and customer satisfaction, helping Schwab maintain its leadership position among next-generation investors.
• Client Growth: Strategic initiatives are producing tangible results in account openings (+8% YoY) and managed investment solutions (15% net inflow growth).
• Industry Recognition: Recent #1 broker distinction significantly boosts brand equity and customer trust.
• Favorable Macroeconomic Setting: As the Federal Reserve signals policy stability and consumer sentiment improves, capital markets participants such as Schwab are poised to capture the “wealth effect” as assets under management rise.

Other catalysts include shareholder-friendly capital allocation policies, lower reliance on bank supplemental funding (-46% YoY), and opportunistic expansion as smaller competitors struggle with scale and regulation.

Investment Strategies

Whether one adopts a short-, medium-, or long-term perspective, Charles Schwab stock seems to represent an excellent opportunity for portfolio inclusion:

• Short-Term: The current technical structure—with price near immediate support and underlying bullish signals—may favor tactical entries targeting a rebound toward the $82.07–$84.50 resistance zone. Volatility driven by macro data or upcoming earnings could be leveraged for rapid gains, ideal for traders who can manage execution risk.
• Medium-Term: For those with a 6–12 month horizon, the alignment of fundamental momentum with improving sector sentiment builds a compelling case. Further confirmation from the next earnings season or successful crypto platform launch could unlock a re-rating toward or beyond analyst consensus at $89.
• Long-Term: Schwab’s structural strengths—a vast customer base, stable dividend growth, and relentless innovation—position the stock as a core holding for investors seeking exposure to the U.S. financial services renaissance. With unmatched scale, diversified revenues, and an ongoing commitment to technology-led growth, Schwab exemplifies long-term value creation.

Ideal positioning may be achieved when accumulating shares during periods of technical consolidation or ahead of anticipated product launches and macro tailwinds.

Is It the Right Time to Buy Charles Schwab?

Synthesizing the evidence, a number of factors justify renewed interest in Charles Schwab:

• Robust financial outperformance—and critical mass in client assets—signals powerful recurring earnings.
• Attractive medium- and long-term growth prospects, underpinned by technology, client acquisition, and a diversified business model.
• An undemanding valuation relative to peers, with upside toward the consensus target price and a growing dividend stream.
• Technical and liquidity conditions that offer timely entry points, especially amid sector-wide momentum.

For investors seeking quality, growth, and stability within the financial services ecosystem, Charles Schwab may be entering a new bullish phase. The fundamental and technical backdrop supports a scenario where the stock could outperform its sector, while multiple potential catalysts lie ahead for 2025 and beyond. As such, Charles Schwab deserves close attention for anyone considering strategic exposure to this pivotal segment of the U.S. capital markets, making now a particularly opportune moment to evaluate a position in SCHW.

How to buy Charles Schwab stock in United States?

Buying Charles Schwab stock (SCHW) online is both straightforward and secure when you use a regulated broker in the United States. As a retail investor, you typically have two main options: spot (cash) purchase, where you actually own the shares, or trading via Contracts for Difference (CFDs), which allows you to speculate on price movements with leverage. Both methods can be accessed online through reputable platforms, often in just a few clicks. To help you choose the right broker for your needs, a detailed comparison of popular providers is available further down the page.

Spot Buying

When you buy Charles Schwab stock with cash, you become a direct shareholder and own the shares in your brokerage account. This traditional investment method is ideal for those seeking long-term growth or dividend income. Most U.S. brokers charge a fixed commission per trade—some offer commission-free trading, while others may charge a small fixed fee (typically around $5 per order).

Important information

Example: Suppose the Charles Schwab share price is $81.51. With a $1,000 investment, you could purchase about 12 shares ($81.51 × 12 = $978.12), factoring in a $5 brokerage fee ($983.12 total).

✔️ Gain Scenario: If the price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, a 10% return on your initial investment (excluding fees and taxes).

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on the price movement of Charles Schwab shares without owning the actual stock. CFD brokers charge a spread (the difference between buy and sell prices) and may apply overnight financing fees if you hold leveraged positions after market hours. CFD trading is suited for short- to medium-term strategies and enables leveraged exposure to the stock.

Important information

Example: You open a CFD position on Charles Schwab shares with a $1,000 stake and 5x leverage. Your market exposure is $5,000.

✔️ Gain Scenario: If the stock price increases by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 margin (excluding spread and overnight fees).

Final Advice

Before investing, it's essential to compare brokers’ fees, commissions, available services, and specific conditions, as these can significantly impact your returns. Your preferred method will depend on your investment goals: direct stock ownership is generally favored for long-term investors, while CFD trading can appeal to those seeking flexibility and leverage. For more details and to find the broker that suits you best, consult the comprehensive broker comparison available further down the page.

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Our 7 tips for buying Charles Schwab stock

The latest news about Charles Schwab

Charles Schwab delivered record Q1 2025 results, featuring robust growth in revenue, earnings, and client assets. The company reported $5.6 billion in revenue, up 18% year-over-year, and net income of $1.9 billion, with adjusted EPS of $1.04 rising an impressive 41% from the prior year. Core net new assets reached $137.7 billion, up 44%, as the firm exceeded analyst expectations across revenue and profitability metrics. Asset management fees increased 14% to $1.5 billion, while trading revenue posted a solid 11% year-over-year gain, reflecting strong client engagement and healthy market activity.

In a positive indicator for growth, Charles Schwab continued to deliver record-setting client acquisition and engagement numbers. For the first quarter, 1.2 million new brokerage accounts were opened, marking an 8% increase from Q1 2024, which brought total active accounts to 37 million. Core net new assets showed a 5.5% annualized growth, affirming momentum in asset gathering efforts. The continued digitization of client services and platform upgrades have contributed to deeper customer relationships and stickiness, underpinning ongoing business expansion.

The company strengthened its shareholder returns with an 8% dividend increase and active capital management. Charles Schwab raised its quarterly dividend to $0.27 per share, reflecting a 1.32% yield, alongside a reduction in bank supplemental funding by 46% year-over-year—signaling prudent balance sheet management. These moves, combined with opportunistic share repurchases, highlight a commitment to capital return and financial discipline, enhancing the attractiveness of the stock for income-seeking investors.

Charles Schwab’s strategic technology investments and product innovation have enhanced its market positioning and industry recognition. Continued technology enhancement has improved the client experience, while product expansion discussions—including the potential rollout of spot crypto trading—are seen as valuable future growth levers. These efforts recently earned the firm the title of #1 Overall Broker in 2025 by StockBrokers.com, further cementing its reputation and brand leadership in the U.S. financial services sector.

Long-term uptrend remains intact as Schwab’s stock trades above its 200-day moving average, supported by a positive analyst consensus. Despite mixed short-term technical signals, with the price currently above the 5-day and 200-day moving averages but below the 20- and 50-day, the long-term trajectory is reinforced by strong fundamentals. The consensus analyst target stands at $89.10—about 30% above current levels—with an overwhelming majority of 24 analysts recommending the stock as a Buy, signifying ongoing confidence in the company’s growth strategy and market leadership.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.