5 Stocks to Buy Amid Rising Interest Rates

4. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 59    

The Charles Schwab Corporation (NYSE:SCHW) provides investment banking and brokerage services. It is one of the top brokerage stocks among hedge funds. At the end of the third quarter of 2021, 59 hedge funds in the database of Insider Monkey held stakes worth $4.5 billion in The Charles Schwab Corporation (NYSE:SCHW), compared to 72 in the previous quarter worth $4.8 billion.

On January 31, Deutsche Bank analyst Brian Bedell maintained a Buy rating on The Charles Schwab Corporation (NYSE:SCHW) with a price target of $121, reiterating the stock as one of the top picks for 2022 based on the growth profile of the business and the synergies developed as a result of recent purchases that would drive a 25% expected earnings growth for The Charles Schwab Corporation (NYSE:SCHW) in the coming two years. 

In its Q3 2021 investor letter, Ariel Investments, an investment management firm, highlighted a few stocks and The Charles Schwab Corporation (NYSE:SCHW) was one of them. Here is what the fund said:

“Additionally, financial services provider Charles Schwab Corporation (SCHW) was another strong performer in the period. Management has made progress increasing new and existing customer engagement through its multichannel approach and low-cost, high value product offerings—bolstering the company’s competitive positioning. Elevated interest rate expectations have been another driver of performance as SCHW reinvests deposits in securities and earns a spread. In our view, SCHW has the ability to weather various macro-economic and competitive pressures by flexing its scale and customer centric focus in support of the company’s industry leading cost advantage. We also believe the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s market place standing and long-term growth trajectory.”