Charles Schwab (SCHW) stock sunk this week after the financial services giant reported earnings and said it would be pausing its share buyback program in order to focus on paying down debt. However, even at this lower share price, there’s not enough to convince me to buy this stock, with management banking on interest rate cuts to boost the net interest margin (NIM) from 2.03% to 3%. That’s why I’m neutral on SCHW stock.
Charles Schwab Scares Investors
Charles Schwab is a behemoth of the stockbroker world, but its Q2 results and commentary appear to have scared investors away from its own stock. That’s not to say there weren’t any positives. Charles Schwab reported mixed results for Q2, with earnings slightly above analyst expectations and revenue falling marginally short.
The firm’s adjusted earnings per share (EPS) came in at $0.73, marginally beating the consensus estimate of $0.72, though it…
