Maybe Not Bulletproof, But Charles Schwab Is as Tough as Nails
Given the unpredictable fallout from the coronavirus pandemic, fear-based selling of stocks came as no surprise in March. Banks and brokerage firms were certainly no exception. JPMorgan Chase & Co. shares tumbled more than 40% from peak to trough. At one point, Goldman Sachs was off more than 40% from its February peak as well. Online-trading powerhouse Charles Schwab (NYSE: SCHW) suffered a similarly sized setback in March.
Schwab's recently reported first-quarter results, however, serve as a much-needed reminder that at least some of these brokerage names -- and Charles Schwab in particular -- fare a little better in tough times than some investors might figure. Yes, stock trading is still done when stocks are falling, but that's not the most noteworthy nuance of Schwab's quarter in question; Schwab stopped charging commissions on most trades last year. The one big takeaway from Charles Schwab's fiscal Q1 numbers is that this is a fee-driven company that just wants to hold on to its clients' money, no matter how it's allocated.
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Source Fool.com
