1 Reason Charles Schwab Can Keep Winning
In the past few months, the market has favored stocks that benefit from a rising interest rate environment, such as financials and energy. Charles Schwab (NYSE: SCHW) is one company that has welcomed this, with its stock up 85% since September 2020.
In the past year, the company made a couple of key acquisitions that grew its customer base and expanded its technology offerings for customers. Investors got a taste of what it will be like going forward in the company's fourth-quarter earnings, which is the first earnings period that includes TD Ameritrade's financials. The integration of acquisitions will be key to the firm's future growth and should help the stock keep winning in 2021.
Charles Schwab made a splash with acquisitions in 2020, which it needed to keep pace with Morgan Stanley, which acquired E*Trade last January for $13 billion. Schwab acquired TD Ameritrade during the year for $22 billion in stock, adding 14.5 million new brokerage accounts along with $1.6 trillion in client assets in the process.
Source Fool.com
