Analysts are Upgrading These 5 Stocks

2. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 68

Erste Group raised its ratings for The Charles Schwab Corporation (NYSE:SCHW) from “Hold” to “Buy” on Wednesday, October 5, 2022. Analyst Hans Engel expects the financial services company to achieve positive profit and revenue growth this year.

While Engel expects the growth rates to be down on a year-over-year basis, he expects them to be above the sector average. The Charles Schwab Corporation (NYSE:SCHW) shares marginally moved down on Wednesday morning despite the upgrade.

Meanwhile, The Charles Schwab Corporation (NYSE:SCHW) also appeared in the second-quarter 2022 investor letter of asset management firm Baron Funds. Here’s what the firm said:

“Shares of online brokerage firm The Charles Schwab Corporation (NYSE:SCHW) detracted in the quarter over concerns that clients will shift assets to less profitable money market funds and declining equity markets will pressure the asset management business. We retain conviction. Despite turbulent markets, Schwab attracted over $120 billion of net new client assets in the recent quarter. Rising interest rates should lead to increased profits on the company’s nearly $600 billion of interest earning assets as well.”