Charles Schwab (SCHW) Soars 1.09% on New Accounts Surge

Charles Schwab Corporation (SCHW) shares surged 1.09% today, marking the sixth consecutive day of gains, with a cumulative increase of 5.23% over the past six days. The stock price reached its highest level since March 2022, with an intraday gain of 1.24%.

The strategy of buying SCHW shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 17.26% gain. This suggests that the strategy captured some of the growth associated with the overall market uptrend, but the returns were relatively modest and did not fully capitalize on the longer-term potential of the stock. The Charles Schwab Corporation (SCHW) has demonstrated strong financial health and consistent growth in client assets and account openings. However, the weekly holding period might have limited the gains, as the stock continued to perform well beyond the initial week. A longer investment horizon might have resulted in higher returns.

Charles Schwab's recent stock performance can be attributed to several key factors. The company's stock has experienced a notable 12% price movement over the last month, aligning with the broader upward trend in the markets. This suggests that Schwab's performance is influenced by general market conditions, which have been favorable for the stock.

Additionally, Schwab received a price target increase from Truist, raising the target from $84 to $97 while maintaining a Buy rating. This positive adjustment by analysts could contribute to investor sentiment and drive further stock price movement. The increase in the price target reflects a bullish outlook on the company's future prospects.

Schwab also reported a significant increase in new brokerage accounts opened during the month, totaling 439,000. This represents a 22% increase compared to April 2024 and a 13% increase from March 2025. The surge in new accounts indicates strong investor engagement and confidence in Schwab's services, which is likely to support the stock's upward trajectory.

Furthermore, Schwab's improvement in financial health has allowed the company to increase the pace of supplemental paydowns. This positive development justifies a Buy rating and contributes to a favorable outlook for the company. The enhanced financial stability and strategic initiatives are expected to drive long-term growth and support the stock's performance.