Should I buy Charles Schwab stock in 2025? Expert NZ Insights

What is Charles Schwab?

*Estimate based on net income and margin comments.

How much is the Charles Schwab stock?

The price of Charles Schwab stock is falling this week. As of now, SCHW trades at USD $87.76, reflecting a 24-hour decrease of 0.33% and a 0.52% decline over the past week. The company’s market capitalization stands at $159.98 billion, with an average three-month trading volume of 10.27 million shares. Key metrics include a P/E ratio of 26.68, a dividend yield of 1.23%, and a beta of 0.89—indicating relatively low volatility. For NZ investors, Schwab’s steady fundamentals and modest beta may appeal to those seeking exposure to the US financial sector with controlled risk.

Our full analysis on the Charles Schwab stock

Having carefully examined Charles Schwab's most recent quarterly results and its share price evolution over the past three years, we have aggregated key insights from diverse sources—including financial ratios, technical metrics, competitive benchmarking, and sector trends—using our proprietary analytical algorithms. This integrated approach allows us to assess the company’s risk-return profile with exceptional clarity. So, why might Charles Schwab be poised as a particularly strategic gateway into the global capital markets sector as 2025 unfolds?

Recent Performance and Market Context

Charles Schwab's (NYSE: SCHW) stock performance in 2025 stands out in a financial services sector marked by both volatility and opportunity. As of 30 May 2025, SCHW is trading at $87.76, up a robust 18.58% year-to-date and an impressive 24.43% over the last twelve months. This strength reflects the company’s ability to consistently outperform broader indices, particularly as investor appetite for quality, scale, and digital innovation returns to the fore.

Positive news flow continues to underpin sentiment. The record Q1 2025 earnings report revealed net income of $1.9 billion (+40% YoY) and net revenues of $5.6 billion (+18% YoY), decisively outpacing expectations. Notably, core net new assets surged to $137.7 billion for the quarter, reflecting heightened engagement from clients seeking resilience and execution in turbulent markets. Further, the 8% increase in quarterly dividends and $1.5 billion share buyback in Q1 signal management’s strong confidence in cash flow sustainability.

On the macro front, the environment has become distinctly more supportive for financial intermediaries with rich platform ecosystems. Stabilising U.S. monetary policy and high equity market participation levels, bolstered by digital adoption and a growing mass affluent investor base, position market leaders such as Schwab as direct beneficiaries. For New Zealand-based and global investors, Schwab’s global scale and US platform provide a natural hedge against localised volatility and open new windows for international portfolio diversification.

Technical Analysis

From a technical standpoint, Charles Schwab currently presents a constructive chart setup that seems to favour accumulation. The RSI (14-day) at 66.78 reflects robust demand, remaining below overbought thresholds—signalling room for continued upside without risk of imminent technical exhaustion.

Short- and medium-term moving averages add further conviction: the 5-, 20-, 50-, 100-, and 200-day simple moving averages—all trend above the current price—deliver unanimous buy signals. Notably, the 20-day and 50-day SMAs at $85.81 and $80.42, respectively, reinforce a pattern of higher lows and dynamic upward support.

Support levels at $86.50, $87.06, and $87.84 have been well respected, helping absorb periods of market churn. On the upside, resistance at $89.18 and $90.52 may serve as near-term milestones, but a persistent close above these levels could invite new capital flows targeting the consensus 12-month price objective of $91.32—with some analyst targets reaching as high as $114.

The technical structure, in summary, supports scenarios where SCHW finds itself in a new bullish phase, grounded both in price action and the alignment of widely followed momentum indicators.

Fundamental Analysis

The fundamental case for Charles Schwab has rarely looked more compelling. Revenue growth remains strong, with Q1 2025 net revenues advancing 18% YoY and net income leaping 40%—a clear demonstration of operating leverage. Adjusted EPS of $1.04 not only marked a 41% increase versus Q1 2024 but surpassed consensus forecasts, highlighting both execution and prudent guidance.

Profitability and capital efficiency are standout features: pre-tax profit margins above 43% and a return on common equity at 18% (annualized) position Schwab well above sector averages. Net interest margin expanded to 2.53%, benefiting from both higher rates and rigorous asset-liability management.

Valuation, while richer than some incumbents, is justified by Schwab’s earnings quality and growth. The trailing P/E ratio of 26.68, PEG below 1.3, and a P/S of 7.86, while elevated relative to underperforming peers, signal premium positioning rather than overextension. A price/book of 3.95 accurately captures the robust underlying franchise, and a notably low beta of 0.89 emphasises relative stability in a volatile sector.

Structurally, Schwab's diversified, fee-based revenue model anchors it amid sector dislocation. The company’s innovation track record—ranging from 24-hour trading and streamlined digital account onboarding to industry-leading advisor support—continues to propel client engagement and asset accumulation. Its $9.93 trillion in total client assets (+9% YoY) and 37 million active brokerage accounts speak volumes about entrenched market leadership and brand trust.

Volume and Liquidity

Trading volume averages 10.27 million shares daily, placing SCHW high in the S&P liquidity spectrum. This elevated trading depth both reflects and reinforces confidence among institutional participants.

A public float of 1.71 billion shares ensures substantial capacity for large orders, supporting dynamic valuation and reducing the risk of erratic price swings. The liquidity profile is particularly attractive for both retail and professional investors seeking easy entry and exit without market impact, a decisive advantage in uncertain climates.

Catalysts and Positive Outlook

Multiple catalysts coalesce to create a distinctly optimistic outlook for Schwab:

• Record New Asset Flows: A 44% YoY increase in net new assets highlights Schwab’s growing share of high-value clients and consolidators, a key engine for future revenue streams.
• Trading Activity and Digital Innovation: Sustained market volatility drives higher commission and spread income, amplified further by Schwab’s expanded digital offerings—including 24-hour trading and robust mobile infrastructure.
• Wealth Management Expansion: Record inflows into Managed Investing Solutions (+15% YoY) and new advisor-centric innovations reinforce Schwab's reputation as the preferred platform for both individuals and independent financial advisors.
• ESG and Corporate Recognition: Multiple “best broker” accolades and recognition for ESG initiatives attract clients with sustainability priorities and support premium valuation multiples.
• Strategic M&A and Buybacks: $1.5 billion in Q1 share repurchases, combined with a clear appetite for opportunistic acquisitions, signal both financial flexibility and a proactive stance on capital allocation.

Looking forward, Schwab’s ongoing expansion into crypto assets and advisor support services provide further optionality for long-term growth—and can act as new drivers in a market seeking exposure to evolving investment trends.

Investment Strategies

The current technical formation and company fundamentals support a variety of potential entry points and strategies:

• Short-Term: With support in the $87 zone and strong momentum, tactical positioning ahead of resistance at $89–$90 could allow short-term traders to benefit from upcoming catalysts, including earnings updates and sector-wide rallies.
• Medium-Term: Those seeking to capitalise on trend continuation may view the 20-day and 50-day averages as dynamic support levels. Positive earnings revisions and asset flow updates are likely to provide trading catalysts over the next two quarters.
• Long-Term: For investors with a multi-year horizon, Schwab's scale, technology initiatives, and consistent dividend increases create a compelling compounding story. Buying near current technical support can provide optimal risk-reward, especially in anticipation of further margin expansion and asset growth.

Positioning at current levels appears justified given the balanced risk profile, supportive sector backdrop, and imminent catalysts, especially for globally diversified investors seeking access to large-cap U.S. exposure.

Is it the Right Time to Buy Charles Schwab?

In summation, Charles Schwab today stands on a foundation of strong financial results, expanding client assets, and sector-leading innovation. The company’s formidable market position, prudent balance between growth and profitability, and visible technical momentum underscore a period of opportunity that should not be overlooked.

The positive confluence of macroeconomic tailwinds, digital transformation adoption, record net asset flows, and significant capital returns to shareholders suggest that Schwab may be entering a new era of value creation. Our rigorous multi-factor analysis points to a scenario where the stock seems to represent an excellent opportunity for those seeking both near-term potential and sustained compounding over the cycle.

For New Zealand-based and international investors, Charles Schwab offers an efficient, liquid, and globally connected investment avenue—reinforcing its status as a core holding candidate in a diversified capital markets allocation.

As 2025 evolves, Charles Schwab may well assert itself as a gateway to the next wave of wealth management and financial platform growth—meriting serious consideration from investors seeking quality, momentum, and long-term upside.

How to buy Charles Schwab stock in NZ?

Buying shares of Charles Schwab (SCHW) online is both simple and secure for New Zealand investors, thanks to regulated online brokers. You have two key options: buying the shares outright (spot/cash buying), which gives you direct ownership, or trading via Contracts for Difference (CFDs), which allows you to speculate on price movements with leverage. Each method has distinct features, risks, and potential rewards. Your choice will depend on your investment goals, appetite for risk, and preferred strategies. To help you get started, a comprehensive comparison of trusted brokers is provided further down this page.

Cash Buying

When you buy Charles Schwab shares for cash (also known as spot buying), you are purchasing actual ownership of the stock, entitling you to dividends and voting rights. Typically, NZ brokers charge a fixed commission for each international trade—often around NZD $5–$15 per order.

Important example

For example, with the current Charles Schwab share price at USD $87.76 (about NZD $143.00 at recent exchange rates), a NZD $1,000 investment (about USD $613) allows you to buy approximately 6 shares of SCHW. Including a standard brokerage fee of NZD $10, your total outlay will be about NZD $1,000.

✔️ Gain scenario:
If the share price rises by 10%, your 6 shares are now worth NZD $1,100.
Result: That’s a +NZD $100 gross gain, or +10% on your original investment (excluding currency effects and taxes).

Trading via CFD

CFDs (Contracts for Difference) let you trade on Charles Schwab’s price moves without owning the shares. With CFDs, you can use leverage—meaning you only need to put up a fraction of the total position size. The main costs are the spread (the difference between buy and sell prices) and overnight financing fees if you hold the position for more than a day.

Important example

For example, with a NZD $1,000 stake and 5x leverage, you can access the equivalent of NZD $5,000 of SCHW shares.

✔️ Gain scenario:
If the stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a NZD $400 gain on your NZD $1,000 margin (excluding spreads and overnight fees).

Final Advice

Before investing in Charles Schwab, it’s crucial to compare brokers’ fees, currency conversion charges, platform conditions, and investor protections. The ideal method—cash buying or CFD trading—depends on your objectives: long-term ownership with dividends or short-term speculation with leverage. Take your time to review the broker comparison below to select the right provider for your needs, and remember: sound investing starts with being informed.

Our 7 tips for buying Charles Schwab stock

The latest news about Charles Schwab

Charles Schwab posts record Q1 2025 results, with net income up 40% and robust client asset inflows. Reporting its strongest first quarter to date, Charles Schwab achieved $1.9 billion in net income (+40% YoY) and added $137.7 billion in core net new assets, driving total client assets near $10 trillion. The platform welcomed 1.2 million new brokerage accounts (+8% YoY), while daily average trading volume climbed 17% quarter over quarter. These results, highlighted by 18% annualized return on common equity and a pre-tax margin above 43%, underscore growing client engagement and successful business execution, strengthening investor confidence globally, including for New Zealand shareholders and investors accessing Schwab via international brokers.

The board approved an 8% dividend increase and authorized $1.5 billion in share buybacks during Q1 2025. Schwab raised its quarterly dividend to $0.27 per share (up from $0.25), with a current yield of 1.23%, and executed substantial buybacks, reflecting strong capital discipline and management’s confidence in future earnings streams. These shareholder-friendly moves, combined with Schwab’s stable payout history, are particularly attractive for NZ-based investors seeking consistent USD-denominated income and capital appreciation in their offshore portfolios.

Technical and analyst signals remain strongly bullish, with upgrades from major institutions and favorable momentum indicators. Schwab’s share price has risen 18.58% year-to-date and 24.43% over the last year, outperforming many sector peers. Technical analysis points to a “Strong Buy” consensus, bolstered by moving averages (SMA and MACD) and resilient support levels just below the current price. Notably, firms like Goldman Sachs and Wells Fargo have recently upgraded Schwab, while the average 1-year price target now stands near $91.32 — suggesting further upside potential for NZ investors monitoring capital markets for positive trends.

Strategic digital innovation and new product features, including 24-hour trading access, enhance Schwab’s global competitiveness. The launch of 24-hour trading for all clients, including international account holders, bolsters Schwab’s appeal to global investors who require access across time zones, supporting more flexible portfolio management for NZ-based clients. Ongoing investments in digital infrastructure, recognition as the top broker by multiple reputable platforms, and dedicated resources to managed investing solutions all serve to strengthen user experience, solidifying Schwab’s reputation as a technology-driven wealth management leader.

No significant legal, regulatory, or operational headwinds specific to New Zealand or international clients have been identified this week. Schwab remains in good standing with no recent adverse developments affecting cross-border investors or NZ residents accessing its services. Its internationally recognized ISIN registration (US8085131055) and established role as a leading custodian make its products consistently available on major global platforms supporting New Zealand institutional and retail investors, further reinforcing stability and reliability for offshore diversification.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.