Is Charles Schwab Stock a Buy?
Even before the COVID-19 pandemic, there was an expectation of significant consolidation in the asset management industry over the next five years. The pandemic will likely accelerate that as more companies turn to M&A to bolster flagging assets totals and slowing growth.
This will benefit the industry behemoths like Charles Schwab (NYSE: SCHW). The asset manager and brokerage firm has been active on the M&A front and made one of the biggest acquisitions in the space last year, purchasing one of its main brokerage competitors, TD Ameritrade (NASDAQ: AMTD), for $26 billion. Schwab is down about 25% year to date but has outperformed the financial sector. There are a few good reasons it will continue to do so.
Schwab is in the process of closing on three acquisitions, including TD Ameritrade, the assets of USAA Investment Management, and fixed income separate account manager Wasmer, Schroder and Co.
Source Fool.com
