Is Charles Schwab Stock Underperforming the S&P 500?

Based in Westlake, Texas, The Charles Schwab Corporation (SCHW) is a financial services company offering brokerage, banking, and financial advisory services. It helps individual investors, financial advisors, and employers manage and grow their wealth through investment products, trading platforms, retirement plans, banking services, and professional investment solutions. It has a market capitalization of $190.5 billion.

Companies worth $10 billion to $200 billion are generally described as “large-cap stocks,” and SCHW fits that description, with its market cap exceeding this threshold and reflecting its substantial size, influence, and position within the Capital Markets industry. SCHW stands out for its massive client asset base, strong brand reputation, and trusted customer service. Its large scale improves efficiency, while its focus on innovation strengthens its competitive position. Strategic acquisitions, including Forge Global, also expand its offerings and create opportunities for further growth in the investment services market.

SCHW is currently 4.1% below its 52-week high of $114.53, reached on August 24, 2026. The stock has also gained 25.7% over the past three months, outpacing the S&P 500 ($SPX), which has risen 1.4% during the same period.

Shares of SCHW have gained 9.9% year-to-date and 13.1% over the past 52 weeks, slightly trailing the S&P 500’s 12.3% YTD gain and 18.2% return over the past year.

SCHW has been trading above its 50-day moving average since late June and its 200-day moving average since early July, underscoring a bullish trend.

SCHW has slightly lagged the broader market, partly reflecting investor concerns over its sensitivity to interest rates and customer cash sorting, which can pressure net interest income. Regulatory risks surrounding its cash-sweep practices have also weighed on sentiment. However, strong asset growth, rising wealth-management inflows, and its wide economic moat continue to support a positive long-term outlook.

On July 21, SCHW shares fell about 2.5% after reporting its Q2 results. Adjusted EPS of $1.62 surpassed Wall Street’s expectation of $1.55, while revenue of $7.07 billion beat the $6.90 billion forecast.

Within the competitive Capital Markets industry, Morgan Stanley (MS) has shown resilience, significantly outperforming SCHW by gaining 20.2% year-to-date and surging 42% over the past 52 weeks.

Wall Street analysts are somewhat bullish on SCHW’s prospects. The stock carries a consensus “Moderate Buy” rating from the 24 analysts covering it, while the mean price target of $123.27 implies 12.2% upside from current levels.