In October, Charles Schwab (NYSE: SCHW) closed on one of the biggest deals in the financial sector this year when it acquired rival brokerage firm TD Ameritrade. The combined entity becomes the largest brokerage firm in the country with about $6 trillion in assets under management, 8 million brokerage accounts, and more than 5 million daily average trades.
Since the deal closed on Oct. 6, Schwab's stock price has jumped about 38% to its current price of around $50 per share. It is up about 6% year to date after being down double-digit percentages for most of the year. The market has obviously reacted favorably to the move, but is it a short-term spike or a long-term trend? Let's look a little deeper to see if Schwab is a buy.
Image source: Getty Images.
Source Fool.com