5 Best Long Term Low Risk Stocks to Buy According to Hedge Funds

2. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 104

5-Year Return: 32.02%

Beta Value: 0.80

On May 15, Raymond James analyst Patrick O’Shaughnessy raised the firm’s price recommendation on The Charles Schwab Corporation (NYSE:SCHW) to $137 from $126. He reiterated an Outperform rating on the shares. The analyst said the company’s updated financial outlook could lead to another round of positive estimate revisions. He also noted that Raymond James believes the current bear case tied to AI concerns will likely prove overdone.

On the same day, Piper Sandler analyst Patrick Moley raised the firm’s price goal on SCHW to $105 from $103. The analyst kept a Neutral rating on the stock. The firm noted that the shares traded down about 2% that day, even after management raised its revenue outlook, supported by stronger net interest margin expectations heading into year-end. Piper Sandler said management commentary focused on the positive role AI could play in the business. The discussion also pushed back against the AI-driven “cash optimization” concerns that have recently weighed on the stock. The firm further highlighted momentum in advisor services, opportunities in workplace services, and continued strength in Schwab’s self-directed trading and wealth management businesses.

The Charles Schwab Corporation (NYSE:SCHW) is a savings and loan holding company. Through its subsidiaries, the company provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services.