The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services. It offers brokerage accounts with equity and fixed income trading, margin lending, options trading, futures and forex trading, and cash management capabilities, including certificates of deposit; third-party mutual funds through the Mutual Fund Marketplace and Mutual Fund OneSource service, as well as mutual fund trading and clearing services to broker-dealers; exchange-traded funds; advisory solutions for managed portfolios, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; banking products comprising checking and savings accounts, first lien residential real estate mortgage loans, home equity lines of credit, and pledged asset lines; and trust custody services, personal trust reporting services, and administrative trustee services. It also provides digital retirement calculators; integrated web-, mobile-, and software-based trading platforms, real-time market data, options trading, premium research, and multi-channel access; self-service education and support tools; online research and analysis tools; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; retirement plan services; mutual fund clearing services; and advisor services, including interactive tools and educational content. The Company operates through branch offices. The Charles Schwab Corporation was incorporated in 1971 and is headquartered in Westlake, Texas.

Charles Schwab appears to be a high-quality financial business with strong profitability, but the market is already pricing in a great deal of good news. Its P/E ratio is around 20 and notably above the industry median, while P/B, P/S, and P/FCF are also significantly above sector averages, indicating a quality premium and at the same time limiting the potential for further re-rating. That said, the company’s operating efficiency is indeed very strong: ROE, ROA, ROI, and return on tangible equity are well above the median and improving year by year, while profit margins and operating margin continue to rise. Revenue, EBITDA, operating income, and net income are also showing steady growth, confirming the fundamental resilience of the business. The balance sheet looks generally acceptable: debt/equity is around the median, and the debt does not appear excessive relative to the scale of assets and capital. However, liquidity is weak by traditional banking metrics: the quick ratio is zero, and the current ratio is below the median, which is partly explainable for Schwab by its business model, but still calls for caution. Dividend yield has fallen to zero in the latest observation, so the dividend factor is not currently supporting the valuation. Net worth and equity remain high and stable, and assets continue to grow, indicating an expanding business scale without any obvious deterioration in quality. At the same time, the growth in liabilities and the elevated valuation multiples mean that the margin of safety for further upside in the target price is limited. Overall, the fundamentals support the current high valuation more than they justify a meaningful increase in it. For an investor, this is a story of strong operating efficiency and capital quality, but with an already expensive entry price and a moderate risk of short-term downside revaluation if expectations normalize.

Charles Schwab Corporation (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Strong index, slightly up. Outflow of funds from longs at a high level.

Strong profitability and profit growth support SCHW, but its high P/E, P/B, and P/S valuations, along with weak liquidity, limit the potential for further upside.

Investors in The Charles Schwab Corporation (Symbol: SCHW) saw new options become available today, for the February 2028 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 487 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the SCHW options chain for the new February 2028 contracts and identified one put and one call contract of particular interest.
The put contract at the $90.00 strike price has a current bid of $7.55. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $90.00, but will also collect the premium, putting the cost basis of the shares at $82.45 (before broker commissions). To an investor already interested in purchasing shares of SCHW, that could represent an attractive alternative to paying $90.53/share today.
Because the $90.00 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 8.39% return on the cash commitment, or 6.29% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for The Charles Schwab Corporation, and highlighting in green where the $90.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $97.50 strike price has a current bid of $8.50. If an investor was to purchase shares of SCHW stock at the current price level of $90.53/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $97.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 17.09% if the stock gets called away at the February 2028 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if SCHW shares really soar, which is why looking at the trailing twelve month trading history for The Charles Schwab Corporation, as well as studying the business fundamentals becomes important. Below is a chart showing SCHW's trailing twelve month trading history, with the $97.50 strike highlighted in red:
Considering the fact that the $97.50 strike represents an approximate 8% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 48%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 9.39% boost of extra return to the investor, or 7.04% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 29%, while the implied volatility in the call contract example is 30%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $90.53) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Further SCHW Research:

SCHW February 2028 Options Begin Trading

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. The Charles Schwab Corporation (Symbol: SCHW) presently has an excellent rank, in the top 25% of the coverage universe, which suggests it is among the top most "interesting" ideas that merit further research by investors.
But making The Charles Schwab Corporation an even more interesting and timely stock to look at, is the fact that in trading on Thursday, shares of SCHW entered into oversold territory, changing hands as low as $91.38 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In the case of The Charles Schwab Corporation, the RSI reading has hit 29.7 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 47.3. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, SCHW's recent annualized dividend of 1.28/share (currently paid in quarterly installments) works out to an annual yield of 1.32% based upon the recent $96.80 share price.
A bullish investor could look at SCHW's 29.7 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on SCHW is its dividend history. In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.
Click here to find out what 9 other oversold dividend stocks you need to know about »
Further SCHW Research:

RSI Alert: Charles Schwab Now Oversold

Key Points
The stock market facilitates the buying and selling of stocks, which gives people ownership in companies.
You use a stock brokerage account to buy and sell stocks.
Small-cap index funds may beat the market over the long term.
I think the stock market is the best way an individual can build wealth. But what is it?
It is simpler than you think. You may start hearing complicated terms that go over your head when tuning in to financial media, but that is just an attempt to make the industry seem more sophisticated than it actually is. Once you understand the basics of the stock market, you can start putting your money to work and build wealth for retirement, all without getting out of bed.
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In fact, if you invest $10,000 and earn a standard rate of return, you could end up with hundreds of thousands of dollars 40 years into the future. Here's how, and details about the index fund that could do it over the long haul.
What is the stock market and stock indexes?
The stock market is best understood by comparing stocks to a small business. If you are a small business owner, you may own 100% of your restaurant, accounting practice, or whatever you own. A publicly traded stock allows you to own a percentage of any publicly traded business in the world.
There are 14.6 billion shares of Apple. Someone who buys one share at the current price of approximately $330 will own a tiny percentage of Apple, which corresponds to their share of profits and dividends (hence the term "share price"). The stock market facilitates the buying and selling of stocks, allowing someone to buy a stake in a business at the current market price.
Stock indexes aim to track a group of stocks based on characteristics. For example, the S&P 500 index tracks the 500 largest publicly traded companies in the United States. The Nasdaq-100 tracks the 100 largest non-financial companies listed on the Nasdaq exchange.
How to buy and sell stocks
You can easily buy stocks from your computer or smartphone through digital brokerages. These are companies that facilitate stock trading, using automations to match up buyers and sellers of stocks.
Popular brokerages include Robinhood, Interactive Brokers, and Charles Schwab. To buy stocks via these brokerages, you simply need to download the app on your phone, verify your identity, and deposit funds from your bank account. Once the money is in your account, you can buy whatever stocks (or index funds) you desire.
This will generally outperform holding your money in a savings account. A savings account today may pay you an interest rate of 4%. Compound this out for 40 years, and $10,000 in savings will net you $48,000 by around the time you want to retire or start passing down money to family, charities, or other sources. If you invest in the stock market and earn its average compounded annual return of 10%, you will have $453,000. That's a massive difference.
Beating the market with this index fund
What if you want to beat the market, though? First, the best way to do so is with a carefully curated collection of individual stocks, such as the proven Motley Fool stock advisor portfolio.
However, there may be an opportunity to beat the market over the long term by just dollar-cost averaging into an index fund every month. The stock market is often measured by the S&P 500 index, which tracks 500 of the largest companies in the United States.
A long-term bet on smaller stocks with much greater upside could help a portfolio beat the S&P 500. One way to do so would be to buy the iShares S&P Small-Cap ETF (NYSEMKT: IJR), which gets you a piece of the 600 small-cap stocks in the United States with minimal fees. Small-cap stocks have trailed the S&P 500 since the COVID-19 pandemic, but have historically outperformed their large-cap peers.
If you have a decades-long time horizon, an index fund of small-cap stocks may be the way to go.
Should you buy stock in iShares Core S&P Small-Cap ETF right now?
Before you buy stock in iShares Core S&P Small-Cap ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Core S&P Small-Cap ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,887!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,459,146!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 8, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Brett Schafer has positions in Interactive Brokers Group. The Motley Fool has positions in and recommends Apple, Interactive Brokers Group, and iShares Core S&P Small-Cap ETF. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

What Is the Stock Market? Here's the One Index Fund I'd Buy to Beat It.

Key Points
Getting started investing is one of the most important investing decisions you'll make.
Investing in index funds like those that track the S&P 500 is an easy way to get started.
If you're looking for individual stocks, Viking Holdings has a lot of strengths.
Investing in the stock market is one of the best ways, if not the best, to build long-term wealth, and starting to invest is an excellent decision. The S&P 500 (SNPINDEX: ^GSPC), the closely watched index that tracks 500 of the biggest U.S. stocks, has historically returned an average of 9% per year, easily outpacing inflation and other asset classes like bonds and real estate.
For new investors, it's important to understand that that 9% gain is an average, and investing in the stock market comes with a lot of volatility. That means that the index doesn't just steadily gain 9% each year. You might have one year where you gain 30%, but then lose 25% the next year. That is normal, and investors must understand that the best way to make the stock market work for you is to invest over the long term, which means a time horizon of at least five years.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Now, let's review some of the basics to get started investing.
How to start investing
If you're ready to start investing, the first thing you'll need is a brokerage account. You can get one through a number of platforms, including Robinhood, E*TRADE from Morgan Stanley, Interactive Brokers, Charles Schwab, Fidelity, and others.
You can set up a taxable brokerage account, or an individual retirement account (IRA), which offers tax-saving benefits if you're investing to save for retirement, or you can have both.
Once you have an account you've funded with money you're planning to invest, you must decide what to invest in. An easy choice, especially for beginning investors, is to invest in an index fund. This is an exchange-traded fund, meaning you can buy and sell it like a stock, that holds all of the stocks in a certain index, like the S&P 500. In fact, some of the most popular index funds are S&P 500 funds like the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF. Investors who are more interested in tech stocks may want to buy shares of the Invesco QQQ Trust, an index fund that tracks the Nasdaq-100, which holds the 100 biggest companies in the Nasdaq, and is dominated by tech stocks.
One growth stock I'd buy now
You can also invest in individual stocks, which generally carry more upside potential than an ETF, but also greater risk.
One growth stock that I find particularly attractive right now is Viking Holdings (NYSE: VIK), the parent of Viking Cruises.
Viking went public in 2024 and has delivered a string of results showing solid growth and profits. The company also has a number of competitive advantages. Its cruises are differentiated from the offerings of larger cruise lines like Carnival. Viking predominantly focuses on Europe, while most cruise vacations sail around the Caribbean. Viking also aims for a more relaxed, sophisticated experience, as it doesn't allow children, and avoids some of the typical cruise activities like casinos and art auctions. Instead, Viking offers more intellectual activities like lectures and cooking classes. Additionally, all of its rooms have windows, another reason its cruises tend to get high reviews from passengers.
Viking is well-positioned to benefit from ongoing growth in the travel market, and since it caters to an older audience, primarily baby boomers, it's more cushioned from inflation and other consumer pressures.
Viking is also fairly valued, trading at a similar valuation to the S&P 500. Overall, the company combines solid growth and profits with long-term potential at a reasonable price, and it has a business model any investor can understand.
It's a good choice for anyone starting out investing or who's looking for an outperformer.
Should you buy stock in Viking right now?
Before you buy stock in Viking, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Viking wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,396,103!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 30, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group, Vanguard S&P 500 ETF, and Viking. The Motley Fool recommends Carnival Corp. and Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

How to Start Investing in 2026: The Growth Stock I'm Buying Before Year-End

Key Points
It's far more than just a brokerage these days, however.
It also makes coin from a suite of other financial services.
Although it's thrilling when an investor's company hits an all-time high in one of its fundamentals, that investor has to be careful. It's difficult to top a record, and there are many examples of companies that hit peaks they never scaled again.
So Charles Schwab (NYSE: SCHW) shareholders -- myself included -- should take a careful look at the company's second quarter, in which the veteran financial services company reported a historic high in quarterly revenue.
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High-water mark
Let's put a number or two on that peak, then analyze the reasons for it. In the quarter, Schwab's total revenue came in at almost $7.1 billion. That was a robust 21% higher year over year, but despite being a new record, it was overshadowed by the growth of net income not under generally accepted accounting principles (non-GAAP, or adjusted). This surged 32% higher to more than $2.9 billion.
What was the rocket fuel that sent those numbers flying so high? Basically, it was a mix of high growth in Schwab's foundational business, i.e., its brokerage operations, with energetic client take-up of offerings that lie more in the financial services sphere.
As for those brokerage functions, the company's customers simply traded much more actively.
Daily average revenue trades (DARTs; a standard performance metric for brokerages) zoomed 57% higher to total 11.9 million. That, perhaps not surprisingly, was a new quarterly record for the company. Other metrics showing this larger appetite for trading included a recent pop in margin loan balances (up 30% sequentially to over $165 billion).
Many casual observers might not be aware that Schwab has a banking license, all the better to generate another revenue stream. This seems to be working well, thank you very much, as evidenced by a 33% year-over-year rise in bank loan balances to $67 billion. Not to be outdone, the specialized and lucrative Schwab Wealth Advisory service saw its net flows grow by 80%.
Branching out again
In that earnings report, Schwab made sure to tout newer offerings, like the recently introduced Schwab Crypto (no prizes for guessing what investors can buy with that service). Some might consider the company a crypto-jockey-come-lately, but such things were likely said about those other non-brokerage services before they started contributing meaningfully.
Given that, I wouldn't underestimate Schwab's ability to build such a business into a handsome revenue earner.
I'd imagine more than a few analysts tracking the stock would agree with me. After all, their consensus estimate for the company's annual earnings per share (EPS) growth this year is 33%, before cooling to a still-high 20% in 2027. The average pundit projections for revenue growth are 18% and 12%, respectively.
Meanwhile, Schwab is priced to move, as they say. Forward P/E lies under 13, which seems unsustainably cheap given the percentage figures above.
Equity markets are up and down by their nature, so the current frothiness in financial markets might not last (same with demand for non-brokerage services). But for those of us who are at least cautiously optimistic that the upward trend will continue, Schwab's a fine stock to own.
Should you buy stock in Charles Schwab right now?
Before you buy stock in Charles Schwab, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Charles Schwab wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 29, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. Eric Volkman has positions in Charles Schwab. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

Charles Schwab Posted Record Quarterly Revenue of $7.08 Billion. Can It Vault Higher, or Was This a Peak?

In trading on Thursday, shares of The Charles Schwab Corporation (Symbol: SCHW) crossed below their 200 day moving average of $73.68, changing hands as low as $70.88 per share. The Charles Schwab Corporation shares are currently trading off about 5.8% on the day. The chart below shows the one year performance of SCHW shares, versus its 200 day moving average: {{ InlineImage1 }}
Looking at the chart above, SCHW's low point in its 52 week range is $59.35 per share, with $93.16 as the 52 week high point — that compares with a last trade of $71.84. The SCHW DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed below their 200 day moving average »
Also see:
TWST YTD Return
Institutional Holders of PSUN
PFN Dividend History

SCHW Makes Notable Cross Below Critical Moving Average

Five years after its IPO, Robinhood Markets HOOD has evolved from a retail-trading disruptor into a broader financial services platform. The transformation has also been accompanied by substantial shareholder returns. The company priced its IPO at $38 per share in July 2021, while HOOD closed at $120.82 on Sept. 24, 2026, representing roughly 218% appreciation from its IPO price. Its market capitalization now stands at $108.6 billion.
Over the past five years, HOOD stock has soared 169.9%, outperforming the industry’s 77.5% rise. Among its close peers, Charles Schwab SCHW has rallied 28.6% over the same period, while Interactive Brokers Group IBKR has surged 446.9%.
5-Year Price Performance
However, Robinhood’s substantial gains raise the execution bar. Its next phase depends less on proving that it can attract traders and more on demonstrating that its expanding product ecosystem can sustain growth, deepen customer relationships and make earnings less dependent on fluctuations in trading activity.
Robinhood Customers are Becoming More Valuable
Robinhood’s customer base has expanded since its IPO, but the bigger change has been in customer economics. Funded Customers increased from 22.5 million in the second quarter of 2021 to 28.4 million in the second quarter of 2026.
At the same time, Average Total Platform Assets per Funded Customer roughly tripled from about $4,500 to $13,000. New customer cohorts are also arriving with roughly four times more net deposits than around the time of the IPO, while average incoming ACATS transfers have approximately doubled.
Customers Cohorts
Retention trends have strengthened as well. Customer retention reached 93% compared with 77% five years earlier, while asset retention improved to 97% from 79%.
These trends matter because customers with larger balances who stay on the platform longer create more opportunities for Robinhood to monetize relationships beyond trading. Margin lending, cash products, retirement accounts, advisory offerings and Gold subscriptions can increasingly complement transaction-based revenues.
That improvement in customer economics provides the foundation for Robinhood’s broader diversification strategy.
Diversification is Becoming More Visible at Robinhood
Robinhood’s asset mix provides clear evidence of the transition. Five years ago, 86% of platform assets were held in single-name equities or crypto. By the second quarter of 2026, 46% of assets were in ETFs, advisory, retirement and cash products. Total Platform Assets reached $369 billion in the second quarter, up 262% from the second quarter of 2021.
Diversified Platform Asset Mix
Revenue sources are widening alongside the asset base. The company now has 13 business lines generating more than $100 million in annualized revenues, spanning trading, margin interest, securities lending, Cash Sweep, Gold, Bitstamp, prediction markets, Robinhood Legend and credit cards.
Nevertheless, the diversification story remains incomplete.
Transaction-based revenues increased 44% year over year to $776 million in the second quarter of 2026 and remained the largest component of Robinhood’s $1.31 billion in total net revenues. Net interest revenues were $389 million, while other revenues totaled $143 million. Hence, transaction-based revenues remain a major earnings driver, leaving HOOD meaningfully exposed to changes in trading activity despite its broader revenue mix.
August operating data reinforces both sides of the diversification story. Total Platform Assets reached $384 billion, up 26% year over year, while equity trading volumes increased 68%, options volumes climbed 50% and event-contract volumes were roughly 15 times their year-ago level. Crypto trading volume, however, declined 38%.
The differing trends demonstrate an important benefit of HOOD’s expanding product mix: weakness in one category can increasingly be offset by strength elsewhere.
What Could Drive Robinhood’s Next Growth Phase?
Active Trading: Robinhood continues to build products aimed at more sophisticated and active investors. In the second quarter of 2026, equity notional trading volume jumped 85% year over year to $956 billion, options contracts increased 50% to 774 million and event contracts climbed more than tenfold to 13.6 billion.
Robinhood Legend has surpassed $100 million in annualized revenue, while Agentic Trading attracted nearly 100,000 accounts with more than $100 million in assets under custody.
These offerings could help Robinhood capture more trading activity from existing customers while broadening its appeal beyond the retail investors who defined the platform around the time of its IPO.
Wallet-Share Expansion: Perhaps more important to Robinhood’s diversification thesis is its push to become a broader financial platform. Gold Subscribers reached 4.8 million in the second quarter, up 39% year over year. The Gold Card surpassed 1 million customers and more than $17 billion in annualized purchase volume.
Robinhood Banking, meanwhile, had more than $3 billion in deposits from over 240,000 Funded Customers, while Retirement assets under custody surged 82% to $34.5 billion.
These businesses can potentially generate more recurring and balance-driven revenues while increasing customer engagement and retention. Success here would also reduce Robinhood’s reliance on periods of elevated market activity to drive growth.
International Expansion and Crypto Infrastructure: Robinhood is also extending its reach beyond its traditional U.S. brokerage franchise. The acquisition of Bitstamp, the addition of WonderFi, European crypto offerings, Robinhood Chain and planned brokerage expansion into Singapore increase the company’s addressable market and broaden its crypto infrastructure.
International expansion is expected to open new avenues for customer and asset growth, but it also introduces additional regulatory, integration and execution complexity. The pace at which these investments translate into meaningful revenues will therefore be an important area to watch.
Growth Expectations Raise the Bar for HOOD
Robinhood’s expanding businesses are reflected in analysts’ growth expectations. The Zacks Consensus Estimate for HOOD’s 2026 sales and earnings implies a year-over-year increase of 17% and 4.9%, respectively.
For 2027, revenues are projected at about $6.62 billion, while earnings are expected to be $2.86 per share, indicating growth of 26.6% and 32.8%, respectively.
Sales Estimates
Image Source: Zacks Investment Research
Earnings Estimates
Image Source: Zacks Investment Research
This reinforces the case for Robinhood’s long-term growth potential, but they also mean investors are already anticipating meaningful contributions from the company’s newer products and revenue streams.
HOOD’s Premium Valuation: Less Room for Execution Missteps
Robinhood’s valuation reflects the heightened expectations.
HOOD trades at 12.55X trailing 12-month tangible book, substantially above the industry average of 3.13X.
Robinhood’s P/TB TTM
Image Source: Zacks Investment Research
HOOD stock is also expensive compared with Schwab and Interactive Brokers. Schwab and Interactive Brokers have a trailing 12-month P/TB of 7.1X and 1.82X, respectively.
Robinhood’s premium multiple implies substantial expectations for continued asset gathering, stronger product adoption and sustained earnings expansion.
That valuation also raises the consequences of an execution setback. A moderation in trading activity, slower-than-expected adoption of newer businesses, or regulatory challenges surrounding areas such as crypto and prediction markets could make it harder for HOOD to meet the growth expectations embedded in its stock price.
Diversification is Central to HOOD’s Long-Term Growth Story
Robinhood enters its sixth year as a public company with a significantly broader business than investors saw at the IPO. Higher customer assets, stronger retention, expanding retirement and banking balances, and multiple scaled revenue streams indicate that the company is becoming less dependent on its original retail-trading franchise.
Yet transaction-based revenues remain a significant earnings driver, while newer businesses bring execution, integration and regulatory risks. At the same time, HOOD’s premium valuation already reflects substantial expectations for continued asset growth, product adoption and earnings expansion.
The key question for investors is whether Robinhood’s newer businesses can scale fast enough to make revenues more recurring and earnings less sensitive to trading activity while supporting the premium currently embedded in its shares.
At present, Robinhood carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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HOOD at the 5-Year Mark: Diversification to Fuel the Next Growth Phase

Key Points
Financial stocks have lagged the broader market over the past year.
S&P 500 ETFs include top financial stocks like Berkshire Hathaway, JPMorgan Chase, and Visa.
This is an opportune time to invest beyond large-caps and financials.
Exchange-traded funds (ETFs) that track the S&P 500 are the largest and most popular investments in the world for good reason. They provide access to the 500 largest U.S. companies, across sectors, providing diversification in one wrapper, at least among large-caps.
So when one sector, like financials, is struggling, another sector, like energy or technology, can pick up the slack.
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The financials sector, for example, has been one of the worst performers over the past year. The 75 or so large-cap financial stocks within the S&P 500 are flat year to date on a cumulative basis, and they are up just 1% over the past 12 months.
An S&P 500 ETF provides access to the largest financial stocks -- like Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), JPMorgan Chase (NYSE: JPM), Charles Schwab (NYSE: SCHW), Robinhood (NASDAQ: HOOD), Goldman Sachs (NYSE: GS), American Express (NYSE: AXP), and Visa (NYSE: V), to name a few -- that you definitely want in your portfolio. Do you need broader financial exposure than that?
Yes and no.
Financials have struggled
While it wouldn't hurt to get broader exposure to financial stocks, I wouldn't invest in an ETF or individual stocks that focus exclusively on small- and mid-cap financials.
While some areas of finance, like regional banks, have had a resurgence due in part to relaxed regulations and a robust mergers and acquisitions (M&A) market for banks, the outlook is not great for financials right now.
The Fed just raised interest rates, which will increase the cost of borrowing and could hamper lending. Rising prices in an uncertain and sluggish economy are also not ideal for financials. Furthermore, amid a four-year bull market, with high stock valuations, the likelihood of a correction or downturn is higher. That would hurt investment management firms and brokerages.
On the other hand, diversification beyond large-caps is essential right now, given the high valuation of the S&P 500. The Shiller P/E ratio, which tracks the valuation of S&P 500 stocks over the trailing 10 years, adjusted for inflation, is near an all-time high at 41.59. The only other time it was this high was during the dot-com era, and a bear market followed.
Where to diversify
Investors should definitely broaden their portfolios to include small-cap and mid-cap stocks and ETFs, as well as value stocks and international investments.
Many investment strategists, including those at Vanguard, believe that the S&P 500 will underperform small-caps, value stocks, and international stocks over the next 10 years. The reason is a combination of overvalued large-caps, causing investors to rotate out of them, and the expansion of AI out to smaller, non-growth companies and international markets.
Value stocks are projected to be the best-performing asset class, according to Vanguard, with an average annualized return of 6.4% to 8.4% over the next 10 years. Small-caps are expected to return 4.7% to 6.7% over that period, while international ex-US stocks are targeted for a 4.5% to 6.5% annualized 10-year return.
Both growth and large-cap stocks lag, according to Vanguard's 10-year outlook. Large-caps are projected to average a return of 4.1% to 6.1%, while growth stocks are anticipated to see 3.6% to 5.6% annualized returns over the next decade.
Vanguard is not the only one making these projections. Most of the large financial firms anticipate international and emerging market stocks outperforming their U.S. counterparts over the next 10 years. Fidelity anticipates small-caps beating large-caps over the next five to 10 years.
So, while you don't specifically need an ETF that gives you broader exposure within the financials sector, you most definitely should invest in ETFs or stocks that provide access to value, mid-cap, small-cap, and international stocks. Within those ETFs, you'll get some exposure to financials, just not exclusively.
Portfolio diversification is always a good idea, but in the years ahead, going beyond large-cap and, more specifically, large-cap growth stocks, will be essential.
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American Express is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Goldman Sachs Group, JPMorgan Chase, and Visa. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

An S&P 500 Index Fund Already Owns These Financial Stocks. Here's Whether to Own More.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Avantis U.S. Large Cap Value ETF (Symbol: AVLV) where we have detected an approximate $211.4 million dollar outflow -- that's a 1.0% decrease week over week (from 235,700,000 to 233,400,000). Among the largest underlying components of AVLV, in trading today American Express Co. (Symbol: AXP) is off about 0.2%, Progressive Corp. (Symbol: PGR) is up about 0.5%, and The Charles Schwab Corporation (Symbol: SCHW) is higher by about 0.7%. For a complete list of holdings, visit the AVLV Holdings page » The chart below shows the one year price performance of AVLV, versus its 200 day moving average:
Looking at the chart above, AVLV's low point in its 52 week range is $70.10 per share, with $95.315 as the 52 week high point — that compares with a last trade of $91.97. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further AVLV Research:

Noteworthy ETF Outflows: AVLV, AXP, PGR, SCHW

Meta’s fast-rising Muse AI agent has emerged as a fresh concern for finance stocks, as investors assess whether autonomous AI assistants could weaken the customer stickiness that supports banks, brokerages and wealth managers.
The development weighed on several major financial names yesterday. Charles Schwab SCHW was among the hardest hit, declining 6.1%, while JPMorgan JPM and Wells Fargo WFC dropped more than 3% each. Morgan Stanley MS also declined more than 2.5% as markets considered how AI-powered financial decision-making could reshape competition across the industry.
Banks Could Face Higher Deposit Competition
For banks, including JPMorgan and Wells Fargo, the key risk centers on deposits. AI agents could eventually monitor savings rates across institutions, identify higher-yielding alternatives and move funds with minimal customer involvement.
Such capabilities could reduce deposit inertia, making customers more responsive to rate differences. That might force banks to offer more competitive deposit pricing, potentially increasing funding costs and creating pressure on net interest margin (NIM).
SCHW & Morgan Stanley Face Greater Fee Transparency
For Schwab and Morgan Stanley, the challenge is more closely tied to brokerage and wealth management. AI agents could make it easier for clients to compare advisory fees, brokerage costs, cash yields and investment products across competing platforms.
Over time, customers could use autonomous assistants to locate lower-cost products, optimize idle cash or initiate account transfers. That may increase fee transparency, lower switching barriers and raise customer-retention costs.
What This Means for the Finance Industry
The main concern is not that AI agents will replace banks, brokers or wealth managers. Instead, they could make it much easier for customers to switch between financial providers.
For JPM, WFC, SCHW, MS and other financial firms, this could mean tougher competition for deposits, investment assets and advisory clients. Customers may be able to use AI tools to quickly compare interest rates, fees, investment products and services, and then move their money to a better option with less effort.
The impact on earnings is still uncertain. However, Meta’s Muse has brought more attention to the risk that AI could reduce customer loyalty and make financial relationships less sticky over time.
Currently, JPMorgan, Schwab and Wells Fargo carry a Zacks Rank #3 (Hold), whereas Morgan Stanley has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report