12 Best Debt-Free Stocks to Buy Now

7. The Charles Schwab Corporation (NYSE:SCHW)

Potential Upside: 16.8%

Number of Hedge Fund Holders: 99

The Charles Schwab Corporation (NYSE:SCHW) is among the best debt-free stocks to buy now. According to a January 14 note cited by The Fly, TD Cowen made a modest upward revision to its price target on the stock, raising it to $135 from $134 while reiterating a Buy rating.

The report highlighted that the firm remains most constructive on Traditional Asset Managers and is emphasizing a more selective approach with a sharper focus on higher-conviction names. That said, TD Cowen continues to maintain exposure to alternative asset managers, with an increasingly tilted portfolio toward strategies better suited to a “higher-for-longer” rate environment.

Before TD Cowen, Raymond James analysts reiterated their Buy rating on The Charles Schwab Corporation (NYSE:SCHW) and raised their price target from $110 to $114, according to an investing.com report dated January 5. Based on analysts’ estimates, Schwab should be able to withstand net margin pressure from potential Federal Reserve interest rate cuts, given the recent reduction in its high-cost funding exposure and the ability to reinvest maturing securities at higher yields.

The stock is currently a strong Buy by consensus, with 1-year price target estimates implying nearly 18% upside, indicating a robust financial outlook.

The Charles Schwab Corporation (NYSE:SCHW), together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally.