|Bid||45.94 x 3000|
|Ask||45.95 x 1000|
|Day's Range||45.77 - 46.36|
|52 Week Range||34.58 - 51.65|
|Beta (5Y Monthly)||1.38|
|PE Ratio (TTM)||17.16|
|Earnings Date||Apr 12, 2020 - Apr 16, 2020|
|Forward Dividend & Yield||0.68 (1.44%)|
|Ex-Dividend Date||Nov 06, 2019|
|1y Target Est||55.04|
Zero commissions are great, but other broker fees also hit stock investors. And the biggest cost of all can be hidden. These brokers stand out for low fees.
The cream rose to the top again in IBD's Best Online Brokers annual survey. A big broker reclaimed the top spot, while a newcomer stole a top slot.
Free trades? Thank Schwab for bringing them to most investors. And that's just one reason its customers give it high ratings.
If you're looking for trade ideas, beware. Only one broker wins high marks from clients for providing investment ideas. This is what you need to know.
(Bloomberg) -- Companies in the Nasdaq 100 are headed into earnings season with momentum that approaches the unprecedented, their value up by more than $1 trillion since October.Now the world finds out if the rally made any sense.Twenty-six constituents are due to report quarterly results next week, including three of the four biggest U.S. companies, over one blistering 48-hour stretch starting Tuesday. With trillion-dollar-plus market capitalizations and a doubling in Apple Inc. since 2018 to account for, it’s possible investors will be in a less-forgiving mood than usual.As things stand now, Nasdaq stocks are perched at the highest forward valuation since 2007 and investors are getting progressively less patient with failure. Already this reporting season, companies in the broader market whose sales and earnings trailed analyst estimates have seen their shares pummeled the next day by the most in five quarters.“The market isn’t going parabolic, but some of these tech stocks really have,” said Randy Frederick, a vice president of trading and derivatives at Charles Schwab. “If you miss the bar, you’re going to get punished, no question about that.”A four-day week before the landing of big tech earnings saw the Nasdaq 100 slip 0.4% as stocks wavered amid concern over the spread of a virus that started in China. Seven straight weeks of gains have pushed the index to 23 times its forecast earnings, about 30% higher than its 10-year average. That valuations are stretched doesn’t mean stocks can’t rally further. It does raise the drama headed into earnings season.The latest leg of the bull market has come at a time when overall earnings have stopped rising for most industries -- the reason valuations have swelled so much. While the index rose every quarter of 2019 in terms of price, profits fell in two and are now forecast to contract in a third. Given the Nasdaq surged 38%, investors have obviously been OK looking past those numbers. But any indication that 2020’s expectations are optimistic may be taken poorly by stock bulls.That dynamic is writ large in the tech industry, where earnings have dropped 3% or more in each of the past three quarters. Computer and software makers are expected to post a 0.8% profit contraction in the three months through December. Early returns have been encouraging. Texas Instruments, a bellwether for chip stocks, posted results that topped estimates. Intel Corp. reported sales guidance that came in above industry trends.Despite the recent quarterly hiccups, combined net income of five largest tech companies -- Apple, Amazon, Microsoft, Alphabet and Facebook -- totaled $40 billion in the third quarter, 38% above the same period two years ago.“Multiples have expanded, but quarter-over-quarter these companies continue to grow earnings and that’s the whole key,” said Gary Bradshaw, a Texas-based portfolio manager at Hodges Capital Management, who owns shares of Apple, Microsoft, Amazon and Facebook. “It’s one of the areas in the marketplace where you’re seeing good growth. This isn’t 1999 or 2000 when you were valuating those tech stocks on eyeballs.”The cost of falling short has risen as well. A broader gauge of tech, online retail and Internet services stocks dropped 0.9% the day after reporting a miss on second-quarter sales and earnings per share, data compiled by Credit Suisse show. In the third quarter, the average slump was 6.8%.Apple will release quarterly figures on Tuesday, and analysts are focused on how the firm fared during the holiday season and dealt with uncertainty around tariffs. Microsoft, up 62% since the start of 2019, reports Wednesday. Investors will see whether the demand for its cloud-computing programs remains strong. Facebook, which has rallied 66% over that stretch, reports the same day.“I’d expect a little more leadership out of value-oriented sectors, more economically sensitive parts of the market,” Jeff Kleintop, chief global investment strategist at Schwab Center for Financial Research, said by phone. “I think investors seem to be comfortable with sticking with the leaders that got them here, at least for the time being,”\--With assistance from Wendy Soong.To contact the reporters on this story: Elena Popina in Hong Kong at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Brad Olesen at firstname.lastname@example.org, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
E*TRADE (ETFC) Q4 performance displays a rise in non-interest income, a benefit to provision for loan losses and improved DARTs, partly muted by fall in net interest income and higher expenses.
It certainly seems like U.S. stocks are in a holding pattern at the moment. Another day of quiet trading means major market indices are basically flat over the past three sessions.Source: Shutterstock The lack of movement makes some sense. A hugely important batch of earnings reports loom next week, with four of the five most valuable U.S.-listed companies -- Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Facebook (NASDAQ:FB) -- releasing earnings. The impeachment trial is dominating the headlines. And there are some signs of weakness in broader macroeconomic performance. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Of course, those factors also suggest that some sort of movement is coming, particularly given that the last two earnings season peaks led a July sell-off and catalyzed an October rally. Friday's big stock charts feature three names that on their own seem set to make a move, each of which could be amplified by broader sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading Tips General Motors (GM)Source: Provided by Finviz On a forward price-to-earnings basis, General Motors (NYSE:GM) is the fourth-cheapest stock in the S&P 500. But low valuation alone has done little for GM stock, which has remained stuck for years.That may not change for some time -- if ever. But the first of Friday's big stock charts does at least suggest some near-term optimism ahead of earnings early next month: * GM stock sits near the support line of a narrowing descending wedge, which often is a reversal pattern. The wedge does have a sideways lean, and likely still is too wide, but it's worth noting that support for the last few years generally has held not far below current levels. A "hammer chart" pattern on Thursday helps the bull case as well. The chart isn't perfect, but there is some evidence to suggest another reversal from levels under $35. * Fundamentally, again, the valuation seems ridiculously attractive. GM stock trades at 5.5x forward earnings. Its dividend yields 4.4%. There are worries, among them "peak auto" and the rise of self-driving cars and electric vehicles from the likes of Tesla (NASDAQ:TSLA). But even those worries would seem to be priced in to at least some extent. * Click to Enlarge Source: Provided by Finviz But the core problem here is that the same bull case has held for years now and GM stock has gone nowhere. It generally has outperformed rival Ford (NYSE:F), but that's a low bar to clear. General Motors still has a lot of work to do to change sentiment to the point where it can have a bull case that goes beyond "its stock is too cheap." But it's possible, if not likely, that the stock might be at least a little too cheap from a near-term perspective. Charles Schwab (SCHW)Source: Provided by Finviz Charles Schwab (NYSE:SCHW) isn't as cheap as GM. Its long-term performance hasn't been quite as stagnant, but there are some similarities between the stories. The second of Friday's stock charts also suggests potential near-term bullishness: * SCHW has established a flag pattern. A big jump in November after the company announced its plan to acquire online brokerage rival TD Ameritrade (NASDAQ:AMTD) creates the 'flagpole,' while sideways trading since represents the 'flag.' Flag patterns usually are continuation patterns, which suggest another leg up. And while an ascending narrowing wedge does raise the risk of a reversal, the 50-day moving average has provided support, while a golden cross from early December hasn't yet led to a rally. Here, too, the chart isn't perfect, but it does lean positive. * Schwab stock isn't as cheap as GM, but at 19x 2020 earnings per share estimates is hardly expensive. Multiples pro forma for the TD Ameritrade deal are even lower. But there are fundamental worries facing a well-known U.S. consumer brand. Commissions in the industry are going to zero. Lower interest rates have pressured income from cash held in customer accounts. And SCHW stock has struggled over a broader period: shares actually are down 12% over the past two years. * As with GM, while the near-term chart looks positive, secular risks explain a seemingly attractive valuation. For both stocks, market sentiment would help. That could either be a continued rally -- or, perhaps, a long-awaited shift in investor demand from growth names to value plays. LyondellBasell (LYB)Source: Provided by Finviz LyondellBasell (NYSE:LYB) is another value play that has struggled to drive shareholder value. But the third of our big stock charts looks much more concerning: * LYB stock simply looks like it's rolling over. $90 clearly has been established as a key level, providing resistance last year and support more recently. Shares now have breached that support while also reversing out of both an ascending narrowing wedge and a descending triangle. The one piece of good news is a hammer chart pattern on Thursday, in which shares held just below the 200-day moving average. But LYB seems to be hanging on by a thread at the moment. * The trading looks particularly worrisome given that LyondellBasell reports fourth quarter earnings next week. The lack of confidence implied by recent trading doesn't necessarily bode well. It's possible a lower price will mean lower expectations. But it's just as likely that the breakdown in LYB suggests that some investors are predicting a weak report -- and others won't be swayed by even a better-than-expected quarter. * Bulls would respond that LyondellBasell stock is cheap. At less than 9x 2019 earnings per share, it is. An attractive dividend yield makes the stock an income favorite; as with other widely-held names, it's possible that yield could provide support around $84 (at which point the yield would clear 5%). But LYB stock has been cheap for years, and other chemical giants like Dow (NYSE:DOW) and DuPont (NYSE:DD) look inexpensive on paper as well. "Too cheap" hasn't been enough for LYB stock for most of the past decade, and it doesn't look like it's enough yet, either.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post 3 Big Stock Charts for Friday: General Motors, Charles Schwab, and LyondellBasell appeared first on InvestorPlace.
E-Trade just barely topped Q4 views after TD Ameritrade and Interactive Brokers missed on earnings as the online brokers eliminated trading fees last year.
Wealthbox, a CRM for financial advisors, formally announced its agreement with Charles Schwab Corporation (NYSE: SCHW) Advisor Services, over the integration of its CRM solution in the OpenView Gateway for financial advisors.
The elimination of trading commissions cuts into fiscal first-quarter earnings, but increases assets under management Continue reading...
TD Ameritrade's (AMTD) Q1 (ending Dec 31) earnings underline lower revenues and higher expenses, partly mitigated by steady trading activity.
Higher expenses and decline in daily average revenue trades hurt Interactive Brokers' (IBKR) Q4 earnings. However, increase in revenues offers some support.
(AMTD) stock fell after the brokerage company’s quarterly earnings came in below analysts’ expectations. TD Ameritrade shares (ticker: AMTD) are down about 1.5% in after-hours trading. Net interest margin—the key profit center for brokerages—came in at 2.10%, down from 2.18% a year ago.
The Charles Schwab Corporation has been named as one of Fortune magazine’s top 50 World's Most Admired Companies for the third consecutive year.
To operate in the United States, stock brokers must comply with SEC regulations that protect investors. Here is a look at some of the best.
(Bloomberg Opinion) -- Every year for the past decade I have been making a list of what I got wrong. This act of contrition allows me to own my mistakes, recognize my fallibility and learn from the experience. I hope you find some value in doing the same exercise.Let’s get to the errors:No. 1. Trading commissions: Last February, I cited a Morningstar survey that found that “fees fell 8 percent in 2017, the largest one-year decline ever reported.” It seemed, according to data on fees, that the point of diminishing returns had been reached. “The race to zero may be reaching its natural limits,” I wrote.Boy, did Charles Schwab Corp. prove me wrong.Although commission-free trading has been around awhile, it was either a niche product or offered as a teaser for other products. After investment giant Schwab said in October that it would offer commission-free trading, everyone from Fidelity to Vanguard to TD Ameritrade followed suit.One caveat: There is no free lunch, and free trading means that offsetting fees may be hidden or buried in the fine print. I continue to believe that, at least in finance, cheap is better than free. No. 2. University endowments underperform: Each October, many college endowments release their investment performance data for the past fiscal year. I wrote about the Ivy League endowments and how they had failed to beat benchmark returns.But I made an assumption that the benchmark these endowments were being compared against was a globally diversified portfolio. I was wrong. As it turns out — buried in a footnote of the research I relied on — the benchmark used for the study was a domestic portfolio. This is not a good comparison because the endowments invest globally. It stands to reason that they would look like laggards in a period of U.S. market outperformance versus the rest of the world. The lesson learned: The footnotes matter — a lot.No. 3. Brexit: I have been saying that the British will eventually come to realize that Brexit is a self-destructive and needless exercise and eventually would reverse the referendum mandating that the U.K. leave the European Union. I said it here, here and here.The election as prime minister of Boris Johnson, an opportunistic Brexiteer, pretty much means that the exit is going to be fast-tracked in a way that his predecessor, Theresa May, could never manage. There is no need to wait for it to be official: I was wrong about Brexit. The only argument left is whether the U.K. will leave the EU with or without a deal setting the terms of the departure.No. 4. Fiduciary rule: I have long argued that the brokerage industry owes consumers a higher level of care than now on offer and that putting client interests first should be the standard. In other words, rules should require brokers to serve as fiduciaries rather than as the glorified used-car salesmen that they historically have been.Despite opposition from the brokerage industry to any rule change, investors have been voting with their dollars and hiring financial advisers that conform to this better standard. It is all but inevitable, I wrote, that this fiduciary standard would be adopted by the industry, albeit with a nudge from the government.But I underestimated what the deeply motivated and deep-pocketed brokerage industry can accomplish in a deeply corrupt Washington. For now, rules requiring the adoption of the fiduciary standard are on hold.No. 5. Facebook didn't flip the 2016 election: I made a mistake on the long-running debate about the role of a weaponized Facebook in the 2016 election, arguing that very few people change their minds based on social media. Mostly, I argued, social media is a giant echo chamber and that people aggressively avoid ideas that challenge their established opinions.Given how close the 2016 election was — decided by a tiny share of the votes cast in three or four states — I am willing to admit that maybe Facebook content did persuade a few people to change their votes or stay home. Theoretically, this could have swung the election. And while I was predisposed to discount the role of social media in 2020, I now believe it could matter a lot. Let’s hope the 2020 election isn’t so close that the role of social media even matters.To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Charles Schwab Corp.’s plan to eliminate trading fees pushed client assets to a record, surpassing $4 trillion and sending shares higher, even as the firm faced a decline in trading revenue.Customers opened 433,000 new brokerage accounts in fourth quarter, bringing the total to 12.3 million, according to a statement issued Thursday. Trading revenue plunged 58% to $86 million in the period after the company introduced zero-commission trades.The results are the first view of how the largest discount broker’s fee change, which was followed by rivals, is impacting Schwab’s bottom line. And it comes after the company’s $26 billion agreement to buy rival TD Ameritrade Holding Corp.The shares rose more than 4% to $49 in New York trading, the biggest gain since Nov. 21 when news of the Ameritrade deal first broke.Schwab incurred $17 million in pretax acquisition-related expenses in the quarter, which weighed on profit. Schwab reported earnings of 62 cents per share, compared with the average estimate of 64 cents.While earnings missed estimates, the growth in assets, new accounts and client cash pointed in a positive direction, said to Devin Ryan, an analyst with JMP Securities.“There’s reason for optimism on the underlying outlook for the business,” Ryan said in an interview.Other highlightsFourth quarter net interest revenue -- the money Schwab makes from client cash and the largest source of profits -- fell about 2%Total quarterly revenue declined to $2.6 billionSchwab plans a business update conference call with investors on Feb. 4 at 11:30 a.m. New York time.Read moreSchwab Triggers Online-Broker Bloodbath as Price War DeepensBrokers Profit From You Even If They Don’t Charge for TradingSchwab to Acquire TD Ameritrade in Reshaping of Industry (1)(Adds account graphic and shares after third paragraph)To contact the reporters on this story: John Gittelsohn in Los Angeles at email@example.com;Annie Massa in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Mamudi at email@example.com, Alan Mirabella, Melissa KarshFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Charles Schwab earnings missed Q4 estimates, but a surge in new assets suggested the brokerage remained competitive even as the entire industry moved to zero-fee trades.
The Charles Schwab Corporation (SCHW) delivered earnings and revenue surprises of -3.08% and -0.17%, respectively, for the quarter ended December 2019. Do the numbers hold clues to what lies ahead for the stock?
Antoine Dréan, chairman of private-equity advisory Triago, has published his 10 ‘outrageous’ predictions for 2020.
Shares of Charles Schwab Corp. lost 0.8% in premarket trading Thursday, after the discount broker reported fourth-quarter profit that fell below expectations. Net income fell to $852 million, or 62 cents a share, from $935 million, or 65 cents a share, in the year-ago period. The results include an expense related to pending acquisitions of 1 cent per share. The FactSet consensus for earnings per share was 64 cents. Revenue fell 2% to $2.61 billion, matching the FactSet consensus, as net interest revenue declined 1.9% to $1.60 billion. Asset management and administration fees revenue rose 12% to $845 million, just shy of the FactSet consensus of $846 million, while trading revenue dropped 58% to $86 million but beat expectations of $78 million. Schwab caused a stir in the discount broker industry during the fourth quarter, when it dropped commissions on U.S. stocks, ETF and options, then announced a deal to buy rival TD Ameritrade Holding Corp. in a $26 billion deal. Schwab's stock has soared 20.8% over the past three months through Wednesday, while the SPDR Financial Select Sector ETF has gained 9.5% and the Dow Jones Industrial Average has advanced 7.5%.
One may be flying in by helicopter while the other is expected to take a more sustainable route up the mountain but if rumour is to be believed, the snowy alpine resort of Davos COULD be the setting of an unlikely encounter Greta Thunberg and Donald Trump World Economic Forum founder Klaus Schwab though was playing down whether he would attempt to orchestrate a handshake. (SOUNDBITE) (English) KLAUS SCHWAB "We try to never engineer something. I think the best things just happen and afterwards have a positive impact." With sustainability the main theme of the annual summit, pressure has never been more intense on governments to act. (SOUNDBITE) (English) REUTERS CORRESPONDENT CONWAY GITTENS, SAYING: "Business leaders too are under pressure to make meaningful commitments, particularly after a warning last week from BlackRock Chief Executive Larry Fink. He told company boards to step up efforts to tackle climate change and make investment decisions with climate change risk in mind. That'a a big about face from the world's biggest asset manager, with more than $7 trillion of assets under management.'' But will we see more CEOs following suit? The WEF is trying to force their hand by introducing a score card. It will rate companies on the basis of environmental and social performance although they haven't said whether firms would be struck off the Davos guest list if they don't score well. (SOUNDBITE) (English) KLAUS SCHWAB, WEF FOUNDER, SAYING: "We are faced with an urgency. We see a window for action closing and this is the reason why we put so much emphasis on the issue of climate for the 50th anniversary." U.S. President Donald Trump is expected to dominate headlines again, if he shows up. while some world leaders will skip this year's Davos. British PM Boris Johnson has told his ministers to avoid an event seen by many as elitist. Although Schwab insists Johnson told him he'd be back next year. In a bid to preempt criticism that its jetset guests are part of the problem, the WEF says this year's Davos will be fully carbon neutral for the first time.