The private investor boom should continue to give SCHW a tailwind
At the beginning of 2021, we highlighted two top contrasts for the new year. Founder and CEO provided a selection Charles Schwab Corporation (NYSE: SCHW). Six months a year, the bank share achieved a remarkable growth of 35%. To access the full 2021 report, Click here. Below, Bernie checked in to SCHW while looking ahead to see what the stock has left for the last six months of 2021.
With my top pick SCHW trade in the low $ 50 range as 2020 drew to a close, I concluded my comments in the above room as follows: “The all-time high of $ 60 in May 2018 is already in sight – with additional upside in the $ 70 range later this year. ”
My bullish view has proven too conservative as stocks soon embarked on a “no take prisoner” rally that peaked just above $ 76 in early June.
While our stock analysis and price predictions are deeply grounded in technical and sentiment analysis, we believe the fact that SCHW added 3.2 million new broker accounts in the first quarter of 2021 – more new accounts than in all of 2020 – still keeps the already optimistic technical data further strengthened. We suspect the retail boom is just beginning, and in that regard we are turning back the clock and seeing another high in the SCHW – this one at $ 49.26 in April 1999, back in the so-called “point” days. com boom ”- a stock market craze that never reached the level of market participation of individual investors that we routinely experience today.
The SCHW pullback has been true to this year’s shape since June highlight was quite modest. And while we see the potential for a 10% retreat from highs into the $ 68-69 area (further supported by support from the steadily rising 50- and 80-day moving averages), overall we expect more … time high action by SCHW in the second half. Our initial price target is in the $ 80 range, where SCHW would have a market capitalization of around $ 150 billion and a year-to-date increase of 50%.