The Charles Schwab Corporation Stock Price Targets

Here is a comprehensive analysis for The Charles Schwab Corporation (SCHW), including the requested price-target drawing and a detailed fundamental/technical assessment. The horizontal trendlines for Low, Median, and High targets have been drawn and extended 30 days into the future.

Price Target Lines Drawn

• Low Target: 86.00 (Blue)
• Median Target: 110.00 (Orange)
• High Target: 130.00 (Green)
• Extent: Each line extends from 2025-10-07 to 2025-11-06

Technical note: The lines were drawn on the active price chart using SCHW as the ticker, with colors designated to indicate different levels (blue for low/support, orange for the median target, and green for the high/upper-target).

Executive Summary

• The stock sits at roughly $94 with a consensus price target framework that points to upside over the next 12 months, driven by continued earnings strength, healthy cash generation, and a solid balance sheet.
• The market is pricing SCHW with a forward P/E in the mid-20s, a price-to-book near 4.0, and a durable 1.15% dividend yield. A moderate multiple expansion would be needed to move toward the high target.
• Key near-term catalysts include earnings resilience in the latest quarter, positive EPS revisions, and continued growth in fee-based/wealth-management revenues. Longer-term upside depends on margin stability, ROE leverage, and capital deployment (buybacks/dividends).

Fundamental Analysis Table: Key Valuation & Balance Sheet Metrics

• All data as given; latest values are used where applicable.

Metric	Value
Current Price	94.0
Market Cap	170.63B
Enterprise Value	150.75B
Trailing P/E	25.27
Forward P/E	24.74
PEG Ratio	— (not provided)
Price to Book	3.995
Return on Equity (ROE)	15.6%
Return on Assets (ROA)	1.60%
Profit Margin	33.68%
Gross Margin	97.19%
Operating Margin	47.91%
Debt to Equity	111.87
Total Cash	82.11B
Total Debt	55.32B
Dividend Yield	1.15%
Five-Year Avg Dividend Yield	1.26%
Beta	0.97

Notes:

• The balance sheet shows substantial cash relative to debt, supporting liquidity and buyback capacity. Leverage (debt-to-equity ~112x) is high for a financial services firm, but Schwab has a large cash position and steady cash flow generation.
• Profitability metrics are strong for a retail/consumer-facing financial services firm: double-digit ROE and robust operating margins, supported by fee-based services.

Earnings Analysis Recent Earnings Summary (latest quarter shown, 2025-06-30)

• Net Income from Continuing Operations: 2.126B
• Reconciled Depreciation: 0.343B
• Net Interest Income: 2.822B
• Interest Expense: 0.965B
• Interest Income: 3.787B
• Normalized Income: 2.126B
• Net Income (Continuing & Discontinued): 2.126B
• Diluted EPS: 1.08
• Basic EPS: 1.09
• Net Income for Total Equity Holders: 2.0B (approximate from provided data)
• Pretax Income: 2.803B
• Total Revenue: 5.851B

Earnings trends (EPS)

Period	Diluted EPS	Basic EPS
0q (latest)	1.08	1.09
+1q	1.266	1.266
0y	4.648	4.648
+1y	5.443	5.443

Notes:

• The EPS trend shows a step-up in the most recent quarter (0q) to 1.08, with a notable year-over-year level indicating growth in earnings per share when looking at older quarters.
• Trailing twelve-month (TTM) EPS approximates around 3.72 (sum of the last four quarters: 0.71 + 0.94 + 0.99 + 1.08 ≈ 3.72), which aligns with the forward-looking P/E in the mid-20s.

EPS Revisions (Analyst sentiment)

Horizon	UpLast7days	UpLast30days	DownLast30days	DownLast7days	Net Up/Down
0q	3	4	1	1	+3 net (positive)
+1q	4	4	1	0	+6 net (positive)
0y	3	5	1	0	+7 net (positive)
+1y	1	3	4	3	-3 net (mixed/negative over long horizon)

Notes:

• Near-term revisions (0q to 0y) are modestly positive, suggesting analysts have been nudging estimates higher across the next few quarters/years.
• Longer-horizon revisions (+1y) show more negative skew, indicating some profit-deceleration risk in the far longer horizon; however, this is offset by current earnings momentum and cash-generating capacity.

Technical Analysis

• 50-Day Moving Average (MA): ~95.0–95.5 in late Sep into early Oct; current price around 94.0, slightly below the 50-day MA, implying near-term resistance at the MA and potential for a bounce if price recaptures and moves above.
• RSI (14): ~59.0 as of 2025-10-06, implying neutral-to-bullish momentum with room to run before overbought territory.
• MACD (12,26,9): Latest MACD around -0.20 with Signal around -0.30, suggesting a modestly bullish cross had occurred recently; still in negative territory but showing improving momentum.
• Current Price Action: Price (~94) sits near support levels implied by the Low target (86) and just below the 50-day MA, with potential upside if price clears 95–96 area and sustains above the MA.

Analyst Consensus & Price Targets Analyst consensus

• Target Low: 86.0
• Target Median: 110.0
• Target High: 130.0
• Current Price: 94.0
• Target Mean: 108.5
• Number of Analysts: 20

Interpretation:

• The current price is below the median target but above the low target, suggesting a favorable risk-reward skew with substantial upside potential if consensus targets are realized.
• The spread between Low (86) and High (130) reflects a wide range of scenarios, underscoring sensitivity to margin/PE re-rating and net interest income performance.

Price Target Analysis (Short, Mid, Long-Term)

Short-Term (3 months)

• Target: 110 (median target implied by consensus)
• Justification and drivers:
  • Near-term earnings momentum: Q2 2025 results showed solid profitability with Net Income from Continuing Operations at 2.126B and Diluted EPS of 1.08 for the quarter.
  • EPS revisions show positive near-term sentiment (net positive revisions across 0q and 0y horizons).
  • The stock sits near the 50-day MA (~95) and could gain traction if price clears the 95–96 resistance and sustains momentum.
  • Cash generation supports ongoing buybacks and potential dividend support, with a robust balance sheet.
• Risks:
  • If rate environment tightens or margin pressure increases, EPS could disappoint.
  • The stock’s leverage (debt-to-equity around 112x) could magnify downside in a broader risk-off scenario.

Mid-Term (12 months)

• Target: 110 (consensus median) with likelihood of moving toward the mean/upper targets if earnings trajectory and multiple expansion persist.
• Justification and drivers:
  • Consistent earnings growth (TTM EPS around 3.7) supports a higher multiple than today’s level.
  • Positive revisions in the near-term suggest analysts are building confidence in continued profitability and cash flow generation.
  • If ROE remains in the mid-teens and fee-based businesses (wealth management, custody, and trading revenues) continue to grow, the multiple could re-rate modestly.
• Risks:
  • External rate volatility and competitive pressures in the broker/dealer and cash-management space.
  • Regulatory/compliance costs and potential changes to net-interest income from balance sheet mix.

Long-Term (3+ years)

• Target: 130 (upper-end scenario)
• Justification and drivers:
  • Structural growth in Schwab’s core wealth-management franchise, expansión of advisory solutions, and potential rate normalization that sustains higher net interest income and fee-based revenue.
  • Margin stability and sustained efficiency gains could push ROE higher, supporting a higher earnings multiple.
  • Potential for further accretive share repurchases and disciplined capital allocation.
• Risks:
  • Structural competition from other digital brokers and banks; productivity and cost controls must remain strong.
  • Prolonged unfavorable rate environment or macro headwinds could compress net interest income and profit margins.

Key Risks & Opportunities

• Risks:
  • Leverage risk: high debt-to-equity could amplify downside in a downturn. Regulatory/compliance costs could rise, impacting profitability. Execution risk in digital/wealth-management initiatives and integration with partners.
• Opportunities:
  • Continued growth in fee-based, assets under management, and trading volumes could lift revenue per account.
  • Potential multiple expansion as earnings stabilize and investors re-rate the business on cash flow stability.
  • Share repurchases and dividend policies could support upside, particularly if earnings remain resilient.

Investment Recommendation

• Rating: Hold
• Time Horizon: 12–24 months
• Rationale:
  • Current price (~$94) sits below the 12-month median target (110) and well below the high target (130), offering meaningful upside potential under favorable earnings/margin dynamics.
  • The balance sheet is strong (substantial cash, manageable absolute debt, solid cash flow), but the stock trades at a forward P/E around 24–25, implying modest room for multiple expansion absent stronger earnings visibility or margin gains.
  • Near-term momentum indicators (RSI ~59, MACD improving but still modestly negative) suggest a potential for upside if price can clear the 95–97 zone and sustain momentum.
• Expected return potential (12–24 months): Base case around mid-teens to high-teens percentage return, with upside risk to the 20–40% range if the 110–130 targets are realized and multiple expansion occurs.

Analyst Targets vs. Price (quick reference)

• Current Price: 94
• Median Target: 110 (Upside ~17%)
• High Target: 130 (Upside ~38%)
• Low Target: 86 (Downside ~-8%)
• 12-Month Mean Target (Analyst): 108.5

Earnings Summary, EPS Trends, and EPS Revisions – References

• Earnings Summary (latest quarter): Net Income from Continuing Operations 2.126B; Diluted EPS 1.08; Total Revenue 5.851B; Pre-Tax Income 2.803B; Net Interest Income 2.822B; Interest Income 3.788B; Interest Expense 0.965B; Normalized Income 2.126B; Tax Rate 24.2%.
• EPS Trend: 0q Diluted EPS 1.08; +1q 1.266; 0y 4.648; +1y 5.443 (illustrative quarterly and annualized trend).
• EPS Revisions: Near-term revisions show net positive sentiment across 0q and 0y horizons; longer-horizon revisions (+1y) show a modest negative tilt, indicating risk to longer-term earnings if macro conditions or competition intensify.

Summary Tables ( Condensed)

• Analyst Targets and Current Price

  • Current Price: 94.0
  • Target Low: 86.0
  • Target Median: 110.0
  • Target High: 130.0
  • Target Mean: 108.5
  • Analysts: 20

• Selected Fundamentals

  • Market Cap: 170.63B
  • EV: 150.75B
  • P/E (Trailing/Forward): 25.27 / 24.74
  • P/B: 3.995
  • ROE/ROA: 15.6% / 1.60%
  • Profit Margin: 33.68%
  • Debt/Equity: 111.87
  • Cash: 82.11B
  • Debt: 55.32B
  • Dividend Yield: 1.15%
  • Beta: 0.97

Bottom line

• SCHW offers a compelling near-term risk-reward, with solid earnings basis and a favorable balance sheet, but valuation remains relatively rich relative to some peers. The 12-month consensus target is 110, with upside to 130 in the more optimistic scenario. The price path will likely hinge on margin stability, rate environment, and continued expansion of fee-based revenues. The drawn price-target lines at 86, 110, and 130 provide clear resistance/support references as markets test the upside potential from current levels.

If you’d like, I can expand any section (e.g., add a sensitivity table showing potential returns at different EPS scenarios, or a more granular breakdown of the 50-day MA vs. price momentum).