The Bull Case for Charles Schwab (SCHW) Could Change Following Branch Expansion and Record Asset Inflows

• In September 2025, Charles Schwab announced plans to open 16 new branches and expand or relocate 25 existing locations, furthering its presence across the U.S. and adding over 400 new employees, including wealth and financial consultants.
• This physical network expansion coincided with record-setting core net new asset inflows of US$44.4 billion and significant account growth for August 2025, highlighting robust operational momentum and increasing client engagement.
• We'll examine how Schwab's expanded branch footprint and strong new asset inflows may reshape its long-term growth narrative.

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Charles Schwab Investment Narrative Recap

To stand behind Charles Schwab as a shareholder, you need to believe the company can deepen client relationships and sustain asset growth across cycles, while navigating an industry that is rapidly digitizing and facing fee compression. Schwab’s aggressive branch expansion and robust net new asset inflows in August signal operational strength, but the biggest short-term catalyst, client asset growth, remains subject to volatility from interest rate shifts; the risk from sharp downturns in net interest income remains material for now.

Among Schwab’s recent announcements, the July launch of a US$20 billion share repurchase program stands out, reinforcing management’s confidence and potentially enhancing shareholder value. This move, coupled with Schwab’s branch growth initiative, could be viewed in context of the company’s efforts to offset margin pressures and support earnings resilience, although the core risk of interest rate dependency persists.

Yet, investors should be aware of contrasting risks, especially how Schwab’s reliance on net interest income could quickly become a concern if...

Read the full narrative on Charles Schwab (it's free!)

Charles Schwab's narrative projects $30.2 billion revenue and $11.0 billion earnings by 2028. This requires 11.8% yearly revenue growth and a $4.2 billion earnings increase from $6.8 billion today.

Uncover how Charles Schwab's forecasts yield a $108.37 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Eleven different fair value estimates from the Simply Wall St Community span from US$60.32 to US$108.37, illustrating a broad spectrum of expectations. While many focus on Schwab’s asset growth as a key driver, the debate over sensitivity to interest rate changes continues to shape opinions on future performance, explore the community’s varied viewpoints for deeper insight.

Explore 11 other fair value estimates on Charles Schwab - why the stock might be worth as much as 17% more than the current price!

Build Your Own Charles Schwab Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Charles Schwab research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Charles Schwab research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Charles Schwab's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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