Charles Schwab stock rises as KBW upgrades on EPS growth potential

Charles Schwab (NYSE:SCHW) stock advanced 1.5% in Monday morning trading after Keefe, Bruyette & Woods upgraded the online brokerage to Outperform from Market Perform, owing to potentially robust earnings growth in the 2026-2030 period.

“With greater confidence in a path forward from here, and with the Fed looking increasingly likely to cut rates in the coming months, our upgrade comes ahead of an expected sweep cash inflection,” analyst Kyle Voigt wrote in a note.

On the technical front, while SCHW has traded in-line with the wider market since mid-January (+17%), it has lagged most peers, including Interactive Brokers (IBKR) (+41%) and Robinhood Markets (HOOD) (+111%).

Voigt's Outperform rate diverges from the SA Quant system rating and the average SA analyst rating, both at Hold, and aligns with the average Wall Street analyst rating of Buy.