Charles Schwab Stock: Outperforming Nasdaq in the Long Term, But Underperforming in the Short Term.

Charles Schwab Corporation (SCHW) stock has underperformed the Nasdaq Composite over the past three months, gaining 9.2% compared to the Nasdaq's 11.9% gain. However, in the longer term, SCHW stock has outperformed the Nasdaq, rising 29.5% YTD and 49.8% over the past 52 weeks. The company's strong asset management and trading revenues, higher net interest revenues, and solid brokerage account growth drive its outperformance.

Charles Schwab Corporation (SCHW) has shown mixed performance over the past few months, with the stock underperforming the Nasdaq Composite. Over the past three months, SCHW gained 9.2%, compared to the Nasdaq's 11.9% gain. However, in the longer term, SCHW has outperformed the Nasdaq, rising 29.5% year-to-date (YTD) and 49.8% over the past 52 weeks [1].

The company's strong asset management and trading revenues, higher net interest revenues, and solid brokerage account growth have driven its outperformance. Declining funding costs, strategic acquisitions, and increased advice solution fees have also contributed to the positive results [1]. Despite these factors, SCHW slipped 3.8% from its 52-week high of $99.59, achieved on July 29, 2025.

On July 18, 2025, SCHW shares closed up by 2.9% after reporting its Q2 results. Its adjusted earnings per share (EPS) of $1.14 beat the consensus estimate of $1.09. The company’s revenue was $5.9 billion, handily surpassing the consensus estimate of $5.7 billion [1].

Institutional investors have shown significant interest in SCHW. Maverick Capital Ltd. invested approximately $111.56 million in SCHW, acquiring 1,425,125 shares, which now represent about 2.0% of its investment portfolio [2]. Other institutional investors have also increased their holdings in SCHW, reflecting positive sentiment towards the stock.

Analysts remain bullish on SCHW’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $107.65 suggests a potential upside of 12.3% from current price levels [1]. Several analysts have recently raised their price targets for SCHW, reflecting optimism about the company's future performance.

References:
[1] https://www.barchart.com/story/news/34539293/is-charles-schwab-stock-outperforming-the-nasdaq
[2] https://www.marketbeat.com/instant-alerts/filing-maverick-capital-ltd-invests-11156-million-in-the-charles-schwab-corporation-schw-2025-09-01/