4-Star Stocks Poised to Pop: Charles Schwab

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount brokerage Charles Schwab (NYS: SCHW) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Schwab's business and see what CAPS investors are saying about the stock right now.

Schwab facts

Headquarters (Founded)San Francisco (1971)
Market Cap$15.95 billion
IndustryInvestment banking and brokerage
Trailing-12-Month Revenue$4.59 billion
ManagementCEO Walter Bettinger II (since 2008)
CFO Joseph Martinetto (since 2007)
Return on Equity (Average, Past 3 Years)15.6%
Dividend Yield1.9%
CompetitorsE*TRADE Financial (NAS: ETFC) TD AMERITRADE (NAS: AMTD) T. Rowe Price Group (NAS: TROW)

Sources: S&P Capital IQ, Morningstar, and Motley Fool CAPS.

On CAPS, 94% of the 831 members who have rated Schwab believe the stock will outperform the S&P 500 going forward. These bulls include reidabook3 and astephan2525.

Just last month, reidabook3 tapped Schwab as an attractive value pick:

Undeserved beating recently. Still making respectable earnings despite the low interest rates. They should see a little boost from brokerage fees from all the recent high volume. I like them over TD Ameritrade since they've now got [OptionsXpress]. I don't think this has been fairly priced in yet.

In fact, according to Morningstar, Schwab currently sports a PEG ratio of just 0.7. That represents a slight discount to competitors like E*TRADE (1.1), TD AMERITRADE (0.9), and T. Rowe Price (1.5).

CAPS member astephan elaborates on the Schwab bull case:

Among consumer finance companies and brokerages I think Schwab stands out as a stable, honest brand with good customer service and reasonable prices. They are the new Merrill Lynch now that Merrill Lynch ... lost the right to consider itself as stable and solid as a bull.

What do you think about Schwab, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackSchwab?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Schwab. The Motley Fool owns shares of T. Rowe Price Group. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners