Should You Buy Charles Schwab Stock in 2025? UAE Investor Guide

What is Charles Schwab?

How much is the Charles Schwab stock?

The price of Charles Schwab stock is declining this week. As of now, SCHW is trading at $87.76 per share, reflecting a 0.33% drop in the past 24 hours and a 0.41% decrease over the last week. The company’s market capitalization stands at $159.46 billion, with an average three-month trading volume of 10.27 million shares.

SCHW has a price-to-earnings (P/E) ratio of 26.59, a dividend yield of 1.23%, and a stock beta of 0.89, indicating moderate volatility. With its balanced fundamentals and cautious price movement, SCHW may appeal to investors in the UAE seeking stability with measured growth potential.

Our full analysis of the Charles Schwab stock

Over the past three years, Charles Schwab Corporation (SCHW) has demonstrated remarkable resilience and adaptability in the rapidly evolving financial services landscape. Having scrutinized Schwab’s latest quarterly results alongside its robust stock performance, we applied our proprietary algorithms—synthesizing financial metrics, technical indicators, peer benchmarks, and market sentiment—to provide a comprehensive outlook. So, why might Charles Schwab stock once again become a strategic entry point into the capital markets sector in 2025?

Recent Performance and Market Context

Charles Schwab’s stock currently trades at $87.76, placing it near the upper end of its 52-week range ($61.01 – $89.85). While the most recent week has seen a modest pullback (-0.41%), the medium-term trajectory underscores significant momentum: the stock is up +18.58% year-to-date and an impressive +24.43% over the past 12 months. This strong performance reflects the company's successful navigation through shifting rate environments and periods of heightened market volatility—a testament to Schwab’s operational acumen.

Positive recent developments are particularly noteworthy:

• Record Q1 2025 revenue: $5.6 billion, up 18% YoY, affirming growth after challenging industry conditions in recent years.
• 8% increase in quarterly dividend: Now $0.27, signaling robust cash flows and management’s commitment to shareholder returns.
• Significant reduction in bank supplemental funding: Down $11.8 billion to $38.1 billion, enhancing the balance sheet and flexibility.

The wider macro context is also constructive. Persistently higher US interest rates continue to benefit Schwab’s net interest margin, while rising market volatility is driving up brokerage activity and new asset inflows—a critical lever for revenue and profit expansion. Within the capital markets sector, escalating demand for managed investment solutions, combined with digital transformation, has set the stage for leading platforms like Schwab to outperform.

Technical Analysis

From a technical standpoint, Schwab currently exhibits compelling bullish momentum:

• Key technical indicators: The MACD at 2.33 delivers a clear buy signal, confirming the trend’s strength. The 14-day RSI sits at 64.99—approaching overbought, but indicating sustained positive sentiment without being overstretched.
• Moving averages alignment: The 20-day, 50-day, 100-day, and 200-day simple moving averages all rest well below the current price, each displaying buy signals—a classic hallmark of medium- and longer-term uptrends.
• Short- and medium-term structure: The stock is consolidating near support at $87.21, with the next resistance at $89.36. The Williams %R (-33.49) and consensus technical ratings (13 Bullish vs. 3 Bearish) reinforce a favorable risk/reward profile for new positions.

This technical set-up suggests that SCHW may be entering a new bullish phase, underpinned by legitimate price structure and heavy volume.

Fundamental Analysis

Schwab’s underlying fundamentals are equally impressive and provide strong justification for renewed investor interest:

• Q1 2025 revenue reached $5.6 billion, up 18% year-over-year—setting a record for the firm and marking a strong recovery from macro headwinds observed in prior years.
• GAAP EPS surged 46% to $0.99, and adjusted EPS of $1.04 outpaced consensus forecasts. Net income climbed 40% YoY to $1.9 billion.
• Operating metrics are robust: Pre-tax margin at 43.8%, sharp asset growth (+44% in net new assets, now almost $10 trillion AUM), and 1.2 million new brokerage accounts (+8% YoY).
• Valuation remains attractive: The P/E (TTM) stands at 26.6, with a forward P/E of 20.8, pricing in strong earnings visibility. The Price/Sales (7.86) and Price/Book (3.95) ratios are respectable given Schwab’s sector dominance and asset-light, tech-advantaged model.
• Structural strengths: Schwab’s strategic investments in digital technology, unmatched RIA custody market share (over 40%), and well-diversified revenue base provide a competitive moat—particularly as peers navigate consolidation and regulatory change.

Simply put, the combination of above-peer growth, margin expansion, and prudent capital management supports a fundamental narrative that could fuel further valuation gains in an environment favoring quality financial franchises.

Volume and Liquidity

Charles Schwab consistently enjoys deep trading liquidity, with a 3-month average daily volume of over 10 million shares. Its sizable public float (1.71B shares) and significant institutional ownership translate to robust market participation and dynamic price discovery.

This liquidity profile not only facilitates ease of entry and exit for investors of all sizes—including those in the AE market—but also enhances the potential for re-rating events following catalysts such as earnings beats or M&A activity. The underlying market confidence, reflected in sustained volume, typically aligns with periods of pricing strength and upside volatility.

Catalysts and Positive Outlook

Looking toward 2025 and beyond, Schwab’s growth narrative appears particularly compelling due to:

• Interest Rate Upside: Higher prevailing US interest rates continue to expand Schwab’s net interest income by leveraging client cash balances—a dynamic expected to persist so long as global central banks maintain their current policy trajectories.
• Organic Growth Engines: Net new asset inflows remain impressive—$137.7 billion in Q1 (+44% YoY)—highlighting Schwab’s ability to gain market share independent of M&A. The surge in new brokerage accounts and trading volume (daily averages up 17% QoQ) attests to its brand appeal across retail and institutional investor segments.
• Product and Technology Innovation: Ongoing investment in managed investing solutions (quarterly net inflows up 15% YoY) and digital platform enhancements fuel client acquisition and retention, positioning Schwab at the forefront of the industry’s digital transition.
• ESG and Community Impact: With a pronounced focus on sustainability, diversity, and financial empowerment, Schwab aligns with the increasingly important ESG priorities of institutional asset allocators, particularly in the GCC and wider Middle East.
• Strategic Dominance: Schwab’s #1 overall broker designation (StockBrokers.com 2025) and RIA custody leadership underscore its entrenched industry position. A proven ability to execute share repurchases ($1.5B in Q1) and hike dividends further solidifies shareholder value.
• Analyst and Market Consensus: Analyst targets are constructive, with an average price target of $89.79 and a high of $113 (roughly +30% upside). EPS is projected to grow by a robust +30% YoY in 2025, and revenue momentum remains positive according to consensus.

Collectively, these catalysts set the stage for continued earnings expansion and support a strong case for market-beating total returns.

Investment Strategies

Whether one’s time horizon is short, medium, or long term, Charles Schwab currently presents multiple attractive entry points for various investor profiles:

• Short-term positioning: The current technical consolidation around support at $87.21, with clear bullish momentum, offers a timely entry ahead of anticipated earnings or sector catalysts.
• Medium-term investment: Given the positive trend in new asset inflows and margins, plus upside to consensus price targets, investors seeking sector leadership and financial innovation may find Schwab particularly appealing at current levels.
• Long-term exposure: Schwab’s dominant market share, proven adaptability, strong management, and expanding digital platform create opportunities for sustained compounding—especially as global wealth creation and investing trends accelerate.

In each case, the risk/reward appears tilted favorably, with current valuations adequately reflecting risks while offering substantial upside in line with historical sector re-rating cycles.

Is it the Right Time to Buy Charles Schwab?

Synthesizing recent financial milestones, technical signals, and future catalysts, Charles Schwab stands out for its:

• Record-breaking revenue and earnings growth in 1Q 2025
• Expanding net interest margins amid favorable macro conditions
• Leading, tech-forward position in the US brokerage and advisory market
• Strong balance sheet, cash flow generation, and disciplined capital allocation
• Technical momentum that supports further price appreciation

With its compelling combination of growth, stability, and innovation, Charles Schwab appears to represent an excellent opportunity for investors seeking robust exposure to the financial services sector as the landscape evolves through 2025. The fundamentals and forward-looking catalysts justify renewed and serious consideration of SCHW as a core holding, with the stock seemingly poised to enter a new bullish phase.

For those searching for a well-capitalized, innovative market leader with significant upside potential, Charles Schwab may prove to be a strategic choice as the industry’s next wave of growth unfolds.

How to buy Charles Schwab stock in AE?

Buying Charles Schwab (SCHW) stock online today is both straightforward and secure when using a regulated broker in the UAE. Most well-known brokers now offer the choice between two main methods: direct spot share purchases or CFD (Contract for Difference) trading. Spot buying means you own the actual shares, while CFDs allow you to speculate on price movements with leverage. Each approach suits different investing goals and risk tolerances. To help you make the best choice, it's important to compare brokers’ fees and features—see our broker comparison further down this page.

Spot Buying

A cash or spot purchase means you are buying real Charles Schwab shares to become an owner of the company. You typically pay a fixed commission per order—leading UAE online brokers generally charge around $3 to $5 per US stock transaction. For example, with Charles Schwab trading at $87.76 per share, a $1,000 investment (including a $5 broker fee) lets you buy approximately 11 shares (as $995 / $87.76 ≈ 11 shares).

✔️ Example gain scenario

If the share price rises by 10% to $96.54, your shares would now be worth $1,100. Result: +$100 gross gain—matching the 10% price increase on your investment.

Trading via CFD

CFD trading on Charles Schwab lets you speculate on price increases or decreases without owning the underlying shares. CFDs offer leverage—commonly up to 5x for US stocks—amplifying both potential gains and risks. Instead of a direct commission, brokers typically charge a spread (the difference between buy/sell prices) plus overnight financing fees for open positions.

Example

You open a CFD trade on Charles Schwab with $1,000 and use 5x leverage, giving you exposure to $5,000 worth of stock.

✔️ Example gain scenario

If the price rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain on your $1,000 margin (excluding fees like spread and financing).

Final Advice

Before investing, compare each broker's fees, account requirements, and access to international markets. Your ideal method—spot buying for long-term ownership or CFDs for leveraged, short-term strategies—depends on your goals and risk profile. Review our detailed broker comparison below for options best suited to UAE investors looking to buy Charles Schwab shares confidently and efficiently.

Our 7 tips for buying Charles Schwab stock

The latest news about Charles Schwab

Charles Schwab reports record Q1 2025 revenue and profit, solidifying its fundamentals. In its latest quarterly results published within the past week, Charles Schwab delivered a record $5.6 billion in net revenue, reflecting an 18% year-over-year increase, with net income rising 40% and adjusted earnings per share beating consensus estimates. These numbers signal robust operational health and asset-gathering power, with $137.7 billion in core net new assets and over $9.93 trillion in total client assets, vital indicators for analysts tracking broad-based strength and resilience in the firm’s growth model.

Technical indicators have shifted to a sustained buy signal, supported by bullish moving averages and momentum oscillators. All key moving averages—the 20-day, 50-day, 100-day, and 200-day simple averages—are in buy territory, and the MACD remains positive. The current RSI (64.99) and Williams %R levels point to further upside potential, which is consistent with the overall technical consensus that classifies the stock as “Buy” with 13 bullish versus only 3 bearish signals. For regional traders and institutions in the UAE, such technical strength amidst global uncertainty is a constructive signal for allocation.

Schwab’s international platform enhancements and digital innovation efforts are expanding access for UAE-based and regional investors. Over the past week, Schwab’s continued investment in digital infrastructure and managed investing solutions has been emphasized, promoting seamless international account access and lower transaction friction—factors highly relevant for UAE clients seeking exposure to U.S. markets. While the broker does not maintain a physical branch in the UAE, its robust digital onboarding, multi-currency support, and competitive fee structures are increasingly leveraged by UAE-based investors and advisory firms, supporting cross-border capital flows.

Dividend policy remains strong, with an 8% increase reinforcing Schwab’s reliable income proposition for international investors. The latest quarterly dividend, set at $0.27 per share after a recent 8% hike, continues to offer a stable income stream—an attractive trait for both individual and institutional investors in the UAE, where appetite for U.S. dividend stocks is growing amid the current rate environment. The ex-dividend date of May 9, 2025, exemplifies management’s steady commitment to capital return, supporting the firm’s reputation as a high-quality income play globally.

Analyst consensus sees further upside for Schwab, with price targets near all-time highs and strong growth outlook. Updated analyst forecasts place the average target price at $89.79, with the upper estimate extending to $113—more than 28% above current levels—reflecting the firm's dominant market position and high profitability. Projected EPS growth of over 30% year-over-year in 2025 underlines enduring momentum, and this optimism is mirrored by substantial institutional ownership and active buyback programs. The positive sentiment, combined with favorable U.S. financial sector fundamentals, positions Schwab as an attractive and reliable option for investors in the UAE seeking international diversification and robust returns.

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.