A Stock Report on Recommendations of Purchasing the Stock Charles Schwab
Introduction
Charles Schwab Corporation is an American multinational company that offers financial management, asset management services, portfolio management, and securities brokerage services. The company is known for investor education, brokerage accounts, and stock advice to investors. The purpose of this report is to give positive recommendations as to why investing in the Stock Charles Schwab will be beneficial to average clients. After thorough research on the stock performance of Charles Schwab, the findings were that the stock price has recorded a positive percentage gain of +9.14% and has maintained a steady rise and that recent positive price changes in earnings indicate that it is an excellent stock to buy. Further, the firm has maintained annual sales of 10.72 million dollars. The following report will cover a brief history of the company, its financial information, growth report, and investor-related information.
Corporate Profile
Charles Schwab Corporation was founded in the year 1971 by Charles Schwab. It is located in San Francisco, California, in the United States. Charles Schwab Corporation is the third-largest asset and portfolio manager in the United States. Charles Schwab offers stock brokerage and banking advice to both institutional and retail clients. In the 1980’s economic expansion of the country, the corporation diversified its investment portfolio in fields such as automation, digital bookkeeping, and technology (Hedge et al. 76). The digital transformation made the corporation to offer online trading in the year 1994. Charles Schwab went public in 1987, and in the same year, it offered its first stock for sale at $0.31. The company has managed to survive since its inception because of a dedicated team of professionals who work to see its success. Don't use plagiarised sources.Get your custom essay just from $11/page
The Charles Schwab Corporation has a current estimated net worth of $8.3 billion dollars as of April 2019. The company has an annual revenue of $10.13 billion dollars and assets totalling to $296 billion dollars (Mauro et al. 13). The company’s total liabilities are averaging $230 billion dollars. The corporation has a debt to earning ration of 0.32.
Current and forthcoming Product Line
The Charles Schwab Corporation currently offers stock brokerage, fixed income investments, offshore mutual funds, margin loans, options and American Depository Receipts (ADRs). All these product lines are suites for small and large investors. Stocks offer investors with opportunities for them to grow their finances through trading in the American stock exchange market (Hedge et al. 77). Fixed income investments provide investors with the opportunity to earn extra income through bonds and securities with the platform scrutinizing the best offers available. Schwab offers Offshore mutual funds investments for non-us residents a chance to invest with well-known fund families across the world markets and earn from them. International clients also have the opportunity to invest in non- American companies that are listed on the stock exchange. ADRs allow for cross border investments for non-U.S residents.
Relevant Media Coverage
Recent media coverage that happened four days ago indicated that Charles Schwab Corporation recorded a positive start with 45.3 billion dollars in fresh assets in the first two months of 2020. The stock trading brokerage firm is averaging 1 million trades by its clients on trading platforms per day (Tumarkin, Robert, and Robert 42). The company has managed to maintain steady cash flow during times of uncertainty, political events and health outbreaks, for example, the coronavirus pandemic.
Long Term Performance
Long term performance of the stock price has been steadily increasing since 2015, followed by a sharp decrease in 2020. In 2015, the stock price was at $30, rising steadily to $34 in December 2015 and sharply decreased in February 2016, recording a stock price of $24. The stock price started rising steadily throughout 2016 and closed at $38 by December 2016. In January 2017, the stock price began at $41 and rose steadily throughout and closed with a price of $51 by December 2017. In January 2018, the stock price began at $55 and started to decline by mid-June to $52 (Tumarkin, Robert, and Whitelaw 43). The stock price steadily declined, and by December 2018, it closed at $41. The stock price started rising steadily at the beginning of January 2019 to $47 and started declining again, and by October 2019, the stock price had reached $35.By December 2019, the price rose again and closed with at $48. At the beginning of 2020, the stock price started to decline, and by March 2020, the price is at $29. In a nutshell, the stock price of Charles Schwab has been fluctuating rampantly over the last five years. The following is a table showing the long term stock performance analysis of Charles Schwab.
Image courtesy of Schwab official website.
Short Term Performance
The table below shows short term performance on Stock Charles Schwab from 2018 to date. Short term performance of the stock price has recorded a decline from January 2018 to date. At the beginning of January 2018, the stock price traded at $55, and by mid-June 2018, the stock price fell to $50. By December 2018, the stock price closed at $42. At the beginning of January 2019, the stock price rose to $47 and started declining throughout the year, and by December 2019, the stock price rose and closed at $48 (Verges15). At the beginning of January 2020, the stock price traded at $48 showed a steady decline up to date trading at $30.
Image courtesy of Schwab official website.
Recommendations
Charles Schwab Corporation is a stable company with the potential for growth in the coming years. As a financial services company, we recommend average clients to consider investing in the company through their various investments portfolio products because it will benefit them in the long run. Other reasons why clients should consider investing with the company are better management of their portfolios, expert team that is available to help clients in decision making and has a security guarantee. The company has no incident of fraud or illegal financial activities such as money laundering.
In conclusion, Charles Schwab Corporation is a company with diverse financial products that can help an investor in the long term. They have a management team that observes integrity and ensures that investor funds are properly managed and safe. The company also has a dedicated support team that helps customers 24 hours a day with any questions that customers may have regarding investments and their products. The company believes in the power of investing, which creates a powerful bond between customers, employees, and management. Charles Schwab is committed to providing clients with ethical financial services. The company strives to change the financial situation of interested persons and build a safe, secure and bright future for them.
Works Cited
Hegde, Shantaram, Hao Lin, and Sanjay Varshney. “Competitive stock markets: Evidence from companies’ dual listings on the NYSE and Nasdaq.” Financial Analysts Journal 66.1 (2010): 77-87.
Hill, Charles WL, Gareth R. Jones, and Melissa A. Schilling. Strategic management: Theory & cases: An integrated approach. Cengage Learning, 2014.
Mauro, Charles L., Andrew D. Klein, and Walter D. Buist. “Computer systems, methods, and devices for trading with an ergonomic interface.” U.S. Patent No. 8,060,434. 15 Nov. 2011.
Tumarkin, Robert, and Robert F. Whitelaw. “News or noise? Internet postings and stock prices.” Financial Analysts Journal 57.3 (2001): 41-51.
Verges, Teresa J. “Opening the Floodgates of Small Customer Claims in FINRA Arbitration: FINRA v. Charles Schwab & Co., Inc.” Cardozo J. Conflict Resol. 15 (2013): 623.