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 looks like a high-quality financial business with strong profitability, but the market is already pricing in a significantly improved fundamental picture. Profitability is very high: ROE of 19.62%, ROA of 1.89%, ROI of 12.86%, and return on tangible equity of 30.10% are materially above industry medians, while net profit margin of 37.36% and operating margin of 54.07% confirm an efficient business model. The year-over-year trend is generally positive: ROE, ROA, ROI, operating margin, and net margin are all rising sequentially, which supports a valuation premium. Revenue, operating income, net income, and EBITDA are also increasing, indicating business expansion and a stable cash flow. The balance sheet is large and liquid in absolute terms, but current and quick ratios are weak, which is not critical for a financial company, though it does require caution in interpretation. Leverage is moderate: debt/equity of 0.45 looks acceptable and is almost in line with the industry, but debt is rising in absolute terms, so this is not a strong driver of re-rating. On the other hand, valuation multiples look expensive relative to the sector: P/E, P/S, P/B, and P/FCF are noticeably above the median, which limits the potential for further multiple expansion without faster earnings growth. Dividend yield of around 0.29% is low and has not improved over the year, so the dividend factor does not support a higher target price. Overall, the fundamentals point to strong quality and growth, but already at a high valuation, which makes the upside look limited. For an investor, this is more of a story of a stable, profitable, high-quality financial leader than one of clear undervaluation. Therefore, only a modest conservative downward adjustment to the forecast is appropriate to account for expensive multiples and weak dividend support, despite solid but already partly priced-in operational improvement.

Charles Schwab Corporation (The)

Слабый индекс, значительно упал. Быки продолжают терять уверенность.

Weak index, significantly down. Bulls continue to lose confidence.

Сильный индекс, без изменений. Рынок не поддерживает быков.

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

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

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

Strong profitability and earnings growth support SCHW, but expensive valuation multiples and weak dividend yield limit re-rating potential.

Robinhood Markets’ HOOD push into tokenized equities is drawing fresh scrutiny after AMC Entertainment CEO Adam Aron objected to a Robinhood-linked token referencing AMC shares without the company’s approval. Aron argued that the product could confuse investors and undermine issuer rights, while Robinhood CEO Vlad Tenev defended the structure, saying companies do not control third-party products that reference their shares.
The dispute matters because tokenization is central to Robinhood’s international expansion strategy. Its new Stock Tokens, issued by Robinhood Assets (Jersey) Limited, cover more than 190 U.S. stocks and ETFs, and are available through Robinhood Wallet in more than 120 countries. Separately, the company offers more than 2,000 Classic Stock Tokens to eligible European customers with 24/5 trading.
However, these products are not underlying shares. Robinhood’s filings state that Stock Tokens are tokenized debt securities providing economic exposure but no legal or beneficial ownership or voting rights. They are not registered under U.S. securities laws and are restricted in markets including the United States, Canada, the United Kingdom and Switzerland.
Regulation could therefore slow expansion. Robinhood has acknowledged that the Securities and Exchange Commission could assert jurisdiction because the referenced assets are U.S. securities. At the same time, the Bank of Lithuania has sought clarifications on its European tokenized-stock offerings.
Tokenization remains integral to Robinhood’s global expansion. With more than 1 million international funded customers, $384 billion in platform assets and 28.6 million funded customers, regulatory friction is likely to raise compliance costs and delay execution. Still, it is unlikely to derail HOOD’s broader growth.
How are Robinhood’s Peers Expanding Globally?
Two close peers of HOOD are Charles Schwab SCHW and Interactive Brokers Group IBKR.
Schwab is expanding globally through international brokerage, Global Account access to foreign markets and advisory services for overseas clients, with operations spanning the U.K., Hong Kong and Singapore. However, country-specific restrictions and oversight from foreign regulators, alongside capital, client-protection and market-conduct rules, can raise costs and constrain product expansion internationally for Schwab.
Interactive Brokers is expanding globally by adding Korean equities, Brazilian futures, Romanian stocks and easier Latin American funding, extending access across more than 170 markets. However, Interactive Brokers’ operations face oversight from U.S. and foreign regulators, higher compliance costs, capital requirements, licensing constraints and risks from changing securities, derivatives and cross-border rules.
HOOD’s Price Performance, Valuation & Estimate Analysis
Over the past three months, Robinhood’s shares have gained 21.6%, outperforming the industry’s 8.5% growth.
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 11.77X compared with the industry average of 3.34X.
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 2%. The trend is likely to continue next year, with earnings expected to jump 34.5%. In the past week, earnings estimates for 2026 and 2027 have been revised higher to $2.09 and $2.81 per share, respectively.
HOOD currently 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 Stock Tokens Draw Fresh Scrutiny: Could Regulation Slow Expansion?

Robinhood Markets HOOD is expanding beyond retail brokerage by joining the underwriting syndicate for smart-ring maker Oura’s planned IPO. Oura’s SEC filing lists Robinhood Securities among 18 underwriters, marking its first official IPO underwriting role.
The move is likely to be favorable for Robinhood as it broadens its financial services ecosystem. Through IPO Access, the company has historically depended on investment banks to allocate it a limited number of IPO shares for distribution to customers. An official role in the underwriting process could give Robinhood greater influence over retail allocations, potentially helping it secure more shares for its users.
Greater IPO availability is expected to strengthen customer engagement and make Robinhood more attractive to investors seeking early access to high-profile listings. It is also likely to support account funding, asset inflows and subsequent trading activity, while making Robinhood’s large retail base more valuable to issuers. Over time, deeper issuer relationships could also create opportunities for underwriting fees and larger capital markets mandates.
Robinhood Ventures Fund I also holds Oura, pointing to an existing relationship with the company.
The development complements Robinhood’s broader financial services expansion. However, the company appears near the bottom of Oura’s underwriting syndicate, suggesting its initial economics and influence may be modest. Building a meaningful investment banking franchise will likely require larger mandates, a sustained IPO pipeline and stronger issuer relationships over time. While the move adds another potential source of fee-based revenues and supports Robinhood’s diversification efforts, it remains too early to view underwriting as a material growth driver.
How are Robinhood’s Peers Diversifying Beyond Trading?
Two close peers of HOOD are Charles Schwab SCHW and Interactive Brokers Group IBKR.
Schwab has been diversifying beyond trading by expanding into wealth management, banking, lending and advisory services, while enhancing offerings for ultra-high-net-worth and RIA clients. Schwab is also investing in AI-enabled advice and digital banking to deepen client relationships and generate more recurring, less transaction-dependent revenues.
Interactive Brokers is diversifying beyond traditional trading by expanding crypto and stablecoin services, prediction markets,global marketaccess and AI-powered investing tools. Interactive Brokers’ strategy centers on a unified multi-asset platform that deepens client engagement and broadens revenue opportunities across emerging financial products and technologies.
HOOD’s Price Performance, Valuation & Estimate Analysis
Over the past three months, Robinhood’s shares have jumped 45.7% compared with the industry’s growth of 10.8%.
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 12.69X compared with the industry average of 3.38X.
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 2%. The trend is likely to continue next year, with earnings expected to jump 34.5%. In the past week, earnings estimates for 2026 and 2027 have been revised higher to $2.09 and $2.81 per share, respectively.
HOOD currently 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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Robinhood Enters IPO Underwriting: Can IB Be the Next Growth Avenue?

Key Points
Robinhood has been rapidly gaining market share and winning over younger investors, especially with its new prediction market segment.
Charles Schwab has been a staple for more than 50 years, and it continues to ride the momentum of high trading volume.
JPMorgan Chase is approaching a $1 trillion market cap and still trades at a compelling valuation.
Financial stocks rely on people regularly spending, saving, and investing their money. Fintech is the latest innovation that has helped big banks reach new customers while letting smaller companies quickly accumulate market share.
The financial sector is full of options, but these three picks offer buy-and-forget potential through 2030.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Robinhood
Robinhood (NASDAQ: HOOD) has been quite a volatile stock. It was down by more than 40% earlier in the year but has since recovered all those losses, registering an 8% gain this year.
The company, which started as an online securities trading platform, has 13 businesses that generate more than $100 million in annualized revenue, including its red-hot prediction markets segment. This part of the business quickly evolved from a tiny slice of sales to more than 10% of revenue within a year. Revenue from this division rose more than 1,000% year over year in the second quarter.
Although Robinhood's prediction market segment captures the most headlines, established parts of its business continue to perform well. Overall revenue increased 32% year over year, with options and equity-related revenue up by 29% and 95%, respectively.
The fintech company continues to attract young customers. A 7% increase in the total number of funded customers is a testament to that fact. Although Robinhood still makes most of its money from investing-related transactions, the company is branching out to other financial products and services in a bid to become the top one-stop shop for consumers.
2. Charles Schwab
Charles Schwab (NYSE: SCHW) has been a staple for investors for more than 50 years. The discount brokerage firm makes it easy to open trading, retirement, and other investment accounts.
The financial company also happens to trade at a reasonable price-to-earnings (P/E) ratio of 20 while having annualized 18% revenue growth during the past five years.
Recent financial results suggest that Schwab's growth trajectory will continue. The company delivered 21% year-over-year revenue growth that came on the back of a 47% boost in net core assets. As total assets rise, Schwab makes more revenue from fees, and more assets can also increase the number of transactions. A 57% increase in average daily trading volume demonstrates that more assets translate into higher engagement rates.
Schwab's total client assets reached $13.1 trillion in the second quarter. That kind of competitive strength is hard to match, and it implies that Schwab will continue to gain market share in the years ahead. The company even launched Schwab Crypto to attract more users who want to invest some of their money in cryptocurrencies.
3. JPMorgan Chase
JPMorgan Chase (NYSE: JPM) is about to become the first bank stock to reach a $1 trillion valuation. The original JPMorgan was founded in 1871, and after many acquisitions, it has become the largest U.S. bank.
The company continues to attract capital from investors and savers. While average deposits rose a modest 3% year over year, JPMorgan Chase's client investment assets rose 21%. Investment activity has driven some of the highest growth rates for the bank, with equities revenue up by 86% year over year.
JPMorgan Chase is what every financial company aspires to become. The corporate giant is well-entrenched in every part of consumers' lives. It originates loans, issues credit cards, offers brokerage accounts, and provides a wide range of additional products. Chief Executive Officer Jamie Dimon told investors in the Q2 press release that "revenue in each line of business hit a new record."
The stock is up 11% year-to-date and with a market cap of more than $950 billion it's close to entering the trillion-dollar club. Although smaller, higher-growth fintech companies have the potential to outperform it, JPMorgan Chase offers a better margin of safety with its conservative 15.4 P/E ratio.
Should you buy stock in Robinhood Markets right now?
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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets 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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
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JPMorgan Chase is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. 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.

3 Financial Stocks You Could Buy Today and Not Think About Until 2030

Key Points
Given that the economy’s moving parts, policymakers’ decisions, and investor behavior are seemingly consistent, it’s reasonable to assume most of them more or less mirror one another.
And it’s true that while no two bull markets are exactly the same, certainly many of them are similar.
Enough of them are so different than the average, however, that it’s best to avoid assuming any of them will adhere to a particular schedule.
With a start date of Oct. 12, 2022, the current bull market is now nearly four years old. And by some measures, that's a potential problem. See, the S&P 500's (SNPINDEX: ^GSPC) average bull market only lasts 2.7 years.
That's the number from mutual fund company Hartford, anyway, based on the 27 bull markets since 1928. Since 1949, Fisher Investments notes the typical (and more recent) bull market lasts just over five years, which jibes with figures from brokerage firm Charles Schwab. Raymond James (NYSE: RJF) puts the number at 51 months, or four years and three months.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
In other words, most of the statistics say there's probably at least a little more life left ahead for this one.
Just don't get too fixated on the typical bull market's time frame.
It's not a time-based matter
Those figures are averages across all bull markets that start at different times. In all of these cases, however, the length of the S&P 500's underlying bull markets still varied widely. The one that began shortly after the onset of the COVID-19 pandemic only lasted less than two years, for instance. The one stemming from the subprime mortgage meltdown back in 2008 persisted for nearly 11 years. Before that, the recovery from the dot-com collapse of 2000 lasted a predictable five years. Anything's possible.
No two bull markets are the same. Their economic underpinnings are always different and always changing. These changes aren't exactly predictable either. Neither is the response of investors nor that of policymakers to them.
Your best bet, therefore, is not falling into the trap of expecting the S&P 500's cyclical ebbs and flows to adhere to any particular time frame. It's not that you can't or shouldn't look to the future for warning signs. It's just that you want to make sure you're seeing those red flags regardless of what the calendar suggests.
To this end (and in answer to the titular question), no, there's no need for investors to be nervous. Just be alert.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, 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 S&P 500 Index 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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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.
Charles Schwab is an advertising partner of Motley Fool Money. James Brumley has positions in Raymond James Financial. 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.

Here's How Long the Average S&P 500 Bull Market Lasts, According to History. Should Investors Be Nervous?

Key Points
Berkshire Hathaway, after a lull, is showing some interest in putting its hoard of idle cash to work.
The conglomerate isn’t just considering new stocks for its equity portfolio.
Such a strategic shift makes sense because stocks carry a lot of risk relative to their long-term rewards.
Any prediction about any company's future acquisitions should be taken with a big grain of salt. This one is no different. Nobody truly knows what the future holds.
There are certainly reasonable, well-supported guesses about what's likely to transpire, though.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Enter Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB).
Although you may know it best for its portfolio of stocks handpicked by iconic investor Warren Buffett, that's not all Berkshire is. The conglomerate wholly owns a few dozen businesses, including GEICO Insurance, Duracell batteries, Shaw flooring, Pilot travel centers, Clayton Homes, and more. It also recently completed its acquisition of homebuilder Taylor Morrison, and in January closed on the purchase of OxyChem from previous owner Occidental Petroleum.
And the timing of these two recent outright purchases is telling. While it's certainly not unheard of for Berkshire to take a publicly traded company private, it is relatively rare. Now it's happened twice in less than a year, a period in which Buffett, as well as current Chief Executive Officer Greg Abel, have indicated there just aren't many stocks out there worth their price. (The one clear exception has been Alphabet, which is now Berkshire Hathaway's third-biggest stock holding.)
In light of how little has changed in equity markets in the meantime, it's a reasonably good bet that Abel is considering more acquisitions of undervalued companies rather than new positions in publicly traded ones. In fact, it's possible that at least one more could be announced before the end of 2026.
Private is making more and more sense compared to public
Outside of its insurance and energy businesses (where adopting a new name is relatively easy), the last major whole acquisition Berkshire made was its 2016 purchase of the aforementioned Duracell battery brand from Procter & Gamble. So again, outright acquisitions are relatively rare for Berkshire Hathaway.
One of Berkshire Hathaway's more compelling investment attributes, however, is its flexibility. It can focus on picking stocks when it makes sense. When it doesn't make sense, though, the conglomerate can change tack and opt for complete ownership.
And it's recently done so, and for good reason. On an inflation-adjusted basis, the market as a whole is very expensive right now. It would also be naïve to overlook that nearly every sliver of the market is at least somewhat affected by the artificial intelligence (AI) revolution that could live up to every lofty expectations, collapse, or end up somewhere in between these two extremes. The danger to investors is simply not knowing how any AI upheaval might shake out.
It's not just Berkshire Hathaway showing heightened interest in opportunities outside the conventional equity market, by the way. Hedge fund Pershing Square's (NYSE: PS) chief Bill Ackman is creating a new venture fund specifically meant to offer ordinary investors access to private companies planning to go public, while BlackRock (NYSE: BLK) is working on a way of adding modest exposure to privately owned businesses within workers' 401(k) plans. At the same time, interest in private credit and private equity investments through publicly traded companies such as Main Street Capital (NYSE: MAIN) and Brookfield Renewable Partners (NYSE: BEP) (NYSE: BEPC) continues to grow.
All this underscores a certain level of disillusionment with stocks as a whole. Greg Abel's likely seeing and feeling the same.
Then there's the possibility that the stock market itself may be entering a prolonged period of subpar returns. A recent outlook from brokerage firm Charles Schwab suggests large-cap stocks as a whole are only going to produce an average annual return of about 6% through 2036, less than half the average during the past decade, jibing with a prediction from mutual fund powerhouse Vanguard.
Given that outright ownership of entire companies means all of their cash flow trickles up to the parent organization's bottom line -- which isn't the case with stock ownership -- it's conceivable that wholly owning a cash-generating enterprise will bear more fruit for the foreseeable future than being a stockholder of most publicly traded companies.
Possible picks
As for which company (or companies) Abel might choose to wholly acquire next, that's even tougher to predict than whether he'll make any such deal at all. There are a handful of arguable prospects, though.
One of these possible targets is GATX (NYSE: GATX), which leases out its fleet of railroad cars. Although the stock's still within sight of April's record high, it's also reasonably valued at only about 17 times this year's projected per-share profits. Its business is also growing well despite economic headwinds and would mesh well enough with Berkshire's current railroad holding, BNSF. GATX is also simply affordable, with a market cap of a little more than $6 billion.
Or, if Abel wanted to stick with a well-proven approach, Berkshire could shell out roughly $23 billion of the $365.5 billion in cash it's currently sitting on and scoop up insurer Markel Group (NYSE: MKL) while its stock is down. It would certainly be a good cultural fit, as Markel is much like Berkshire Hathaway in that it owns a combination of handpicked publicly traded and privately held companies. It's even occasionally called a "Baby Berkshire."
If Berkshire were willing to think bigger, however, don't rule out a deal for Illinois Tool Works (NYSE: ITW). Although it would cost a hefty $77 billion or more, it would be an outstanding fit.
ITW is a decentralized conglomerate itself, and a successful one because it makes a point of remaining that way, leaving managers alone to let them run their businesses. It's also the kind of reliable cash cow that Buffett loves, with 63 consecutive years of per-share dividend growth.
Just be careful about any such speculations. If a complete acquisition is in the cards, we're not likely to guess it right.
But that's OK -- current Berkshire Hathaway shareholders don't need to worry too much about which deal Abel is likely to make next. Even if it's an acquisition of a publicly traded company at a premium valuation, Berkshire's investors will be the ultimate beneficiaries of any such deal.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, 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 Berkshire Hathaway 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 $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 6, 2026.
Charles Schwab is an advertising partner of Motley Fool Money. James Brumley has positions in Alphabet and Procter & Gamble. The Motley Fool has positions in and recommends Alphabet, Berkshire Hathaway, BlackRock, and Markel Group. The Motley Fool recommends Brookfield Renewable, Brookfield Renewable Partners, Charles Schwab, Illinois Tool Works, and Occidental Petroleum and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.

Prediction: Greg Abel Announces Another Whole-Company Acquisition Before Year-End

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $2 inflow -- that's a 0.2% increase week over week in outstanding units (from 1,,05,4,2,32,,116 to 1,,05,6,2,32,,116). Among the largest underlying components of SPY, in trading today The Charles Schwab Corporation (Symbol: SCHW) is off about 1.3%, Union Pacific Corp (Symbol: UNP) is up about 0.8%, and TJX Companies (Symbol: TJX) is up by about 0.5%. For a complete list of holdings, visit the SPY Holdings page »
The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $629.28 per share, with $779.37 as the 52 week high point — that compares with a last trade of $771.09. 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 SPY Research:

SPY, SCHW, UNP, TJX: ETF Inflow Alert

For Immediate Release
Chicago, IL – August 31, 2026 – Today, Zacks Equity Research discusses Morgan Stanley MS, The Charles Schwab Corp. SCHW and Interactive Brokers Group, Inc. IBKR.
Industry: Investment Banks
Link: https://www.zacks.com/commentary/2981713/3-investment-bank-stocks-set-to-benefit-from-industry-tailwinds
The Zacks Investment Bank industry is poised to benefit from clarity on trade and monetary policy, a resilient economy and lower financing costs, which will likely support M&A and underwriting activities. Trading revenues are expected to stay robust as lingering geopolitical risks and macro uncertainty sustain market volatility and client engagement.
Rising investments in AI, technology and platforms could increase near-term expenses but should enhance long-term operating efficiency. So, industry players like Morgan Stanley, The Charles Schwab Corp. and Interactive Brokers Group, Inc. are worth considering.
Industry Description
The Zacks Investment Bank industry consists of firms that provide financial products and services, including advisory-based financial transactions to corporations, governments and financial institutions worldwide. These started as partnership firms focused on initial public offerings (IPOs), secondary equity offerings, brokerage and mergers and acquisitions (M&As). Gradually, the companies have evolved into providers of various other services, including securities research, proprietary trading and investment management. Industry players work mainly through three product segments: investment banking (M&As, advisory services and securities underwriting), asset management and trading and principal investments (proprietary and brokerage trading).
Key Trends Shaping the Future of the Investment Bank Industry
Underwriting and Advisory Businesses Momentum to Persist: Following a prolonged slump in underwriting, IPOs and deal-making since 2022 amid geopolitical tensions and macro uncertainty, investment banking activity has rebounded. Expectations of a pro-business Trump administration, deregulation and improving policy clarity are supporting advisory and underwriting pipelines. Recent industry trends point to a stronger 2026 M&A cycle, aided by strategic transformations, private-market activity, flexible capital solutions and faster deal execution, while IPO markets are reopening selectively.
A resilient economy, easing financing costs and renewed corporate confidence are expected to bolster M&A and capital-markets revenues. However, Middle East tensions, tariff-related uncertainty and still-selective investor demand could temper the pace of recovery. This evolving macro backdrop is setting the stage for continuous top-line growth for investment banks.
Trading Business to Remain Solid: Client activity in the trading business largely depends on the prevalent macroeconomic and geopolitical conditions. Since 2022, market volatility has increased significantly, largely due to several geopolitical and macroeconomic challenges. President Donald Trump's tariff plans and ongoing geopolitical matters have upended the near-term normalization of the trading business.
Against this backdrop, market volatility and client engagement have remained elevated, keeping trading desks active across asset classes. As investors continue to reposition portfolios in response to policy uncertainty, rate movements and geopolitical developments, investment banks are likely to benefit from sustained trading volumes. Trading income is expected to remain solid in the upcoming period.
Technology to Improve Operating Efficiency: Innovative trading platforms, the use of AI and investments in technology and advertising will likely support investment banks. Industry players are attracting and retaining the best talent for building a leadership team and spending heavily on technology to support clients with infrastructure development and new platforms. While industry players are likely to face increasing technology-related expenses in the near term, these initiatives are expected to improve operating efficiency over time.
Zacks Industry Rank Suggests Bullish Stance
The Zacks Investment Bank industry is a 21-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 245 Zacks industries.
The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry's positioning in the top 50% of the Zacks-ranked industries is a result of a robust earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group's earnings growth potential. Over the past year, the industry's earnings estimates for 2026 have been revised upward by 17.8%.
Before we present a few stocks that you may want to invest in, let's take a look at the industry's recent stock market performance and valuation picture.
Industry's Stock Market Performance Is Impressive
The Zacks Investment Bank industry has outperformed its sector and the S&P 500 over the past two years. While stocks in the industry have collectively soared 72.6%, the S&P 500 composite has rallied 42.8%, and the Zacks Finance sector has risen 31.9%.
Industry's Valuation Is Attractive
One might get a good sense of the industry's relative valuation by looking at its price-to-tangible book ratio (P/TBV), commonly used for valuing investment banks because of significant variations in their results from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 3.32X, above the median level of 2.26X over the past five years. The industry is trading at a considerable discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 is 10.16X and the median level is 13.12X.
Finance stocks typically have a lower P/TBV ratio, so comparing investment banks with the S&P 500 may not make sense to many investors. However, comparing the group's P/TBV ratio with that of the broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector's trailing 12-month P/TBV of 6.10X and the median level of 4.87X for the same period are above the Zacks Investment Bank industry's respective ratios.
3 Investment Bank Stocks to Bet On
Morgan Stanley: It operates globally as an investment banking, securities and investment management company. The key reason for this Zacks Rank #1 (Strong Buy) company's earnings stability is its business diversification initiatives. You can see the complete list of today's Zacks #1 Rank stocks here.
New York-based Morgan Stanley is gradually lowering its reliance on capital markets for income generation by expanding wealth and asset management and using acquisitions (Eaton Vance, E*Trade Financial, Shareworks and EquityZen) to broaden distribution. These moves have supported diversification and a more balanced revenue stream across market cycles. As of June 30, 2026, total client assets across the Wealth Management and Investment Management segments reached $10 trillion, meeting a major milestone. This progress reflects strong momentum across Morgan Stanley's advisor-led, workplace and self-directed platforms, while highlighting its expanding scale in the retirement savings market.
MS' partnership with Mitsubishi UFJ Financial Group, Inc. will likely continue to support its profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. The move strengthens Morgan Stanley's foothold in Japan. The company's global platform is increasingly relevant as capital markets activity broadens outside the United States and across Japan, India, China, South Korea, Taiwan and Hong Kong. Continued investment in regional leadership and collaboration should support wallet share gains across Asia's capital markets and wealth opportunity set.
A favorable macroeconomic backdrop is expected to support the company's IB business, further strengthening its top line. The demand for both advisory and underwriting businesses is likely to rise as corporates become more comfortable with the current economic backdrop. Momentum is expanding beyond the Americas into Asia and EMEA, while active M&A and IPO markets, together with the company's strong competitive position, should support further growth as the macroeconomic backdrop evolves.
With a market cap of $337.5 billion, MS is expected to continue benefiting from its scale and business expansion efforts. Its shares have jumped 28.6% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings implies a year-over-year rise of 25.3% and 2.1%, respectively.
Schwab: With more than $13 trillion in total client assets and a dominant position in both retail brokerage and advisor custody, Schwab benefits from deep client relationships and recurring revenue streams. The company continues to build scale in advice and managed investing, which carries higher revenue per client asset than self-directed activity. This has been driving SCHW's wealth and banking solutions inflows.
Prior acquisitions, including TD Ameritrade, USAA's IMCO assets, Wasmer Schroeder and Motif, expanded distribution and product depth, and Forge Global added another capability layer in private markets. Schwab's scale in both retail and RIA custody continues to translate into durable account growth and net new assets, even in volatile markets. The company continues to add financial consultants and wealth advisers and plans to open new branches. Over time, this mix shift should help Schwab monetize a growing base of client assets with less dependence on episodic trading cycles.
Schwab has moved beyond its AI roadmap into live client deployments, strengthening the potential for technology to deepen engagement and create new monetization avenues. Schwab expanded its digital capabilities with Portfolio Insights, a generative-AI tool for self-directed retail clients, and launched Schwab Crypto, offering direct Bitcoin and Ethereum access. It is also advancing AI-enabled client and advisor tools and invested $65 million in AI-powered wealth-management platform Wealth.com.
A key strength of Schwab is its diversified revenue base, which includes net interest income, asset management fees and advisory services. The company's scale and trusted platform position it well to serve as a bridge between traditional finance and digital assets, especially as cryptocurrency adoption becomes increasingly mainstream.
With a market cap of $186.9 billion, Schwab is expected to benefit from strategic buyouts, a rise in investing solution fees and by leveraging AI to expand relationship-based business. Shares of this Zacks Rank #2 (Buy) company have risen 13.2% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates a jump of 32.7% and 21.2%, respectively, on a year-over-year basis.
Interactive Brokers: This Zacks Rank #2 company is a well-known fintech broker. The company's biggest strength stems from its deep, multi-assetglobal marketaccess, unmatched by most retail and even many institutionally focused competitors. IBKR enables clients to trade across more than 170 markets, dozens of currencies and a wide range of asset classes, including equities, options, futures, foreign exchange, bonds and funds, from a single unified platform.
Another strong aspect of IBKR is technological superiority. This has kept the company's compensation expense relative to net revenues (9.8% in the first half of 2026) below its industry peers. It has been emphasizing the development of proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. This cost discipline supports competitive pricing and reinvestment capacity as the client base grows.
Interactive Brokers continues to broaden its product suite and enhance platform capabilities, helping expand its addressable client base, deepen engagement and diversify fee-generating opportunities. The continued rollout of differentiated products should strengthen client retention, increase platform usage and create incremental revenue opportunities while helping Interactive Brokers remain competitive in the rapidly evolving electronic brokerage industry.
Interactive Brokers' technological superiority, along with a more supportive regulatory environment that could improve product velocity, is expected to bolster net revenues by driving higher client acquisitions. Revenues are also likely to benefit from solid Daily Average Revenue Trades and a favorable trading backdrop supported by increased market participation. IBKR continues to scale its international platform to capture rising cross-border investing demand and wealth creation in emerging markets. Its expanding geographic and product footprint will likely support sustained account growth, diversify client activity across regions and strengthen long-term revenue opportunities.
With a market cap of $164.5 billion, Interactive Brokers is expected to continue benefiting from its business expansion efforts and favorable operating environment. Its shares have gained 34.7% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an increase of 22.8% and 18%, respectively, on a year-over-year basis.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Morgan Stanley, The Charles Schwab and Interactive Brokers

Robinhood Markets HOOD has evolved well beyond its roots as a commission-free stock-trading app. Strong customer engagement, record asset inflows, growing transaction volumes and rapid expansion across prediction markets, credit cards, banking, retirement and wealth management have created multiple growth avenues. This momentum was evident in the first half of 2026, when Robinhood posted record revenues and robust earnings growth.
Much of this optimism is reflected in the stock’s valuation. At $109.76 as of Aug. 27, Robinhood trades at 11.4X trailing 12-month tangible book, well above the industry average of 3.33X.
Robinhood’s P/TB TTM
Also, HOOD stock is expensive compared with its peers – Charles Schwab SCHW and Interactive Brokers IBKR. Schwab and Interactive Brokers have a trailing 12-month P/TB of 7.71X and 1.95X, respectively.
Robinhood’s faster growth, younger customer base, digital-first platform and exposure to emerging businesses warrant some premium. Nevertheless, the gap leaves little room for disappointing execution. Investors considering the stock must therefore determine whether the company’s rapidly expanding financial ecosystem can generate enough sustained earnings growth to justify such a steep price.
Strong H1 Results Underpin HOOD’s Growth Story
Robinhood entered the second half of 2026 with substantial momentum. For the first six months of 2026, net revenues increased 24% year over year to a record $2.38 billion. Earnings per share rose nearly 27% to $1.00, while adjusted EBITDA grew 25% to $1.28 billion.
Quarterly Revenue Trend
Trading remained a major growth engine. Transaction-based revenues rose 25% to $1.4 billion. Options revenues increased 19% year over year to $602 million, while equities revenues jumped 73% to $211 million. Prediction-market event contracts emerged as a key growth driver, generating $260 million in revenues compared with just $13 million in the prior-year period. The weak spot was cryptocurrencies, where revenues declined 43% to $234 million.
Importantly, Robinhood's expansion is no longer solely a trading-volume story. As of June 30, 2026, funded customers increased 7% year over year to 28.4 million, Gold subscribers surged 39% to a record 4.8 million and average revenue per user climbed 24% to $187. Total Platform Assets advanced 32% to $369 billion, while Robinhood recorded net deposits of approximately $39.7 billion in the first six months of 2026, including $21.7 billion in the second quarter alone, highlighting sustained customer asset inflows.
Momentum continued into July. Funded customers edged up to 28.5 million, while trailing-12-month net deposits reached $74.9 billion, representing 25% growth rate relative to July 2025 Platform Assets. Such consistent organic inflows indicate that Robinhood is capturing a larger share of customers’ investable assets.
New Businesses Broaden Robinhood’s Growth Runway
Another reason investors have assigned HOOD a premium valuation is its expanding product ecosystem.
The company now says 13 business lines have reached at least $100 million in annualized revenues. Its Gold Card has crossed 1 million customers, Robinhood Banking held more than $3 billion in deposits at the end of the quarter and Robinhood Strategies had attracted more than 300,000 funded customers and nearly $2 billion in assets. TradePMR's platform had reached $50 billion in assets under management.
Internationally, Robinhood surpassed 1 million funded customers outside the United States and completed its WonderFi acquisition in Canada during the second quarter. Robinhood Singapore received a capital markets services license on July 1, while Robinhood U.K. entered the FCA cryptoasset register on July 31 and launched crypto trading earlier this month. Robinhood Chain also moved to a public mainnet in July, and by Aug. 10, 2026, it had generated more than $18 billion in decentralized-exchange volume and exceeded $840 million in total value locked.
Stock Tokens are available to eligible users in more than 120 countries, while Robinhood Earn had attracted more than $200 million in deposits by July-end. These initiatives broaden Robinhood's geographic reach and crypto use cases. If Robinhood can successfully cross-sell these services, higher customer lifetime values and more recurring revenues could support long-term margin expansion.
Likewise, Interactive Brokers and Schwab have been expanding their product suites aggressively. Interactive Brokers is broadening its product ecosystem beyond traditional stocks and options by expanding into crypto and crypto futures, prediction markets, AI-enabled trading tools and new international markets. This diversification strengthens client engagement while positioning IBKR as a multi-asset, global trading platform.
Meanwhile, Schwab is diversifying beyond brokerage into wealth management, advisory, banking, lending, retirement and asset management. SCHW’s fee-based assets, net interest income and broader financial services reduce commission dependence, support steadier revenues and deepen client relationships.
Robinhood’s Growth Prospects Remain Favorable
Robinhood’s long-term earnings picture remains compelling, although near-term growth is expected to moderate after substantial gains in recent years.
The Zacks Consensus Estimate for 2026 revenues is $5.08 billion, implying 13.7% year-over-year growth. On the other hand, earnings are projected to decline 0.5% to $2.04. However, growth is expected to accelerate next year, with revenues likely to jump 25.5% to $6.38 billion and earnings are projected to surge 31.2% to $2.69.
Earnings Estimates
Image Source: Zacks Investment Research
Asset growth, margin lending, prediction markets, Gold adoption, retirement assets, advisory services and international expansion offer meaningful upside to these estimates. Robinhood’s increasing scale could also generate operating leverage if revenues continue expanding faster than expenses.
Robinhood's liquidity position supports reinvestment, acquisitions and shareholder returns while management continues to manage share count. As of June 30, 2026, cash and cash equivalents were $5.4 billion, and corporate cash, investments and stablecoin totaled $5.6 billion. The company also had $4.9 billion of available lines of credit. In June, Robinhood raised $2.2 billion through 0% convertible senior notes due in October 2029. Thus, a solid liquidity position supports its capital distributions.
Though the company doesn’t pay dividends, it has been actively engaged in share repurchases. In March, the board refreshed the share buyback authorization to $1.5 billion, which management expects to complete over roughly the next three years. As of June 30, 2026, roughly $1.37 billion worth of shares remained available for buyback. Given decent liquidity and balance sheet position, the company’s share repurchases will likely be sustainable.
Robinhood: Risks That Should Not Be Ignored
Robinhood remains exposed to trading volumes, cryptocurrency prices and broader investor sentiment. Crypto transaction revenues have been declining for the last few quarters, demonstrating the volatility inherent in this business.
Costs also warrant attention. Operating expenses increased to $1.39 billion in the first half from $1.11 billion. First-half provisions for credit losses climbed to $92 million from $52 million as Robinhood expanded its credit-card operations.
Further, rapid expansion into prediction markets, cryptocurrencies, lending and international markets increases regulatory and execution risks. A slowdown in retail trading activity, weaker market conditions or regulatory restrictions on high-growth businesses could pressure revenues while simultaneously compressing Robinhood’s premium valuation.
Is Robinhood Stock Worth Betting on?
Following a solid performance in 2025, Robinhood shares have struggled this year and are down 3% amid the crypto-market downturn against the industry’s growth of 10.7%. Although robust equities, options and prediction market activities have partly cushioned the impact, crypto weakness continues to weigh on investor sentiment.
Also, Robinhood shares have underperformed Schwab and Interactive Brokers over the same time frame.
YTD Price Performance
Image Source: Zacks Investment Research
Robinhood’s underlying growth story remains compelling. Record revenues, robust net deposits, expanding customer assets and a rapidly diversifying product suite suggest that the company has considerable room to grow. New businesses such as prediction markets, Gold, banking, credit cards and advisory services could make revenues more diversified and strengthen customer retention.
However, the stock price already reflects substantial expectations. With HOOD trading at a premium, investors are paying today for considerable future growth. The company must therefore continue delivering strong asset inflows, successful product adoption and above-average earnings expansion to justify its premium.
For growth-oriented investors willing to tolerate considerable volatility, Robinhood remains an intriguing long-term story. However, given its elevated valuation and exposure to market, regulatory and execution risks, investors may find the risk-reward equation more compelling following a meaningful pullback rather than chasing the stock at current premium levels.
At present, HOOD 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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This article originally published on Zacks Investment Research (zacks.com).

Strong Growth, Steep Price: Is Robinhood Stock Still Attractive?

The Zacks Investment Bank industry is poised to benefit from clarity on trade and monetary policy, a resilient economy and lower financing costs, which will likely support M&A and underwriting activities. Trading revenues are expected to stay robust as lingering geopolitical risks and macro uncertainty sustain market volatility and client engagement.
Rising investments in AI, technology and platforms could increase near-term expenses but should enhance long-term operating efficiency. So, industry players like Morgan Stanley MS, The Charles Schwab Corporation SCHW and Interactive Brokers Group, Inc. IBKR are worth considering.
Industry Description
The Zacks Investment Bank industry consists of firms that provide financial products and services, including advisory-based financial transactions to corporations, governments and financial institutions worldwide. These started as partnership firms focused on initial public offerings (IPOs), secondary equity offerings, brokerage and mergers and acquisitions (M&As). Gradually, the companies have evolved into providers of various other services, including securities research, proprietary trading and investment management. Industry players work mainly through three product segments: investment banking (M&As, advisory services and securities underwriting), asset management and trading and principal investments (proprietary and brokerage trading).
Key Trends Shaping the Future of the Investment Bank Industry
Underwriting and Advisory Businesses Momentum to Persist: Following a prolonged slump in underwriting, IPOs and deal-making since 2022 amid geopolitical tensions and macro uncertainty, investment banking activity has rebounded. Expectations of a pro-business Trump administration, deregulation and improving policy clarity are supporting advisory and underwriting pipelines. Recent industry trends point to a stronger 2026 M&A cycle, aided by strategic transformations, private-market activity, flexible capital solutions and faster deal execution, while IPO markets are reopening selectively.
A resilient economy, easing financing costs and renewed corporate confidence are expected to bolster M&A and capital-markets revenues. However, Middle East tensions, tariff-related uncertainty and still-selective investor demand could temper the pace of recovery. This evolving macro backdrop is setting the stage for continuous top-line growth for investment banks.
Trading Business to Remain Solid: Client activity in the trading business largely depends on the prevalent macroeconomic and geopolitical conditions. Since 2022, market volatility has increased significantly, largely due to several geopolitical and macroeconomic challenges. President Donald Trump’s tariff plans and ongoing geopolitical matters have upended the near-term normalization of the trading business.
Against this backdrop, market volatility and client engagement have remained elevated, keeping trading desks active across asset classes. As investors continue to reposition portfolios in response to policy uncertainty, rate movements and geopolitical developments, investment banks are likely to benefit from sustained trading volumes. Trading income is expected to remain solid in the upcoming period.
Technology to Improve Operating Efficiency: Innovative trading platforms, the use of AI and investments in technology and advertising will likely support investment banks. Industry players are attracting and retaining the best talent for building a leadership team and spending heavily on technology to support clients with infrastructure development and new platforms. While industry players are likely to face increasing technology-related expenses in the near term, these initiatives are expected to improve operating efficiency over time.
Zacks Industry Rank Suggests Bullish Stance
The Zacks Investment Bank industry is a 21-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #32, which places it in the top 13% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a robust earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gaining confidence in this group’s earnings growth potential. Over the past year, the industry’s earnings estimates for 2026 have been revised upward by 17.8%.
Before we present a few stocks that you may want to invest in, let’s take a look at the industry’s recent stock market performance and valuation picture.
Industry's Stock Market Performance Is Impressive
The Zacks Investment Bank industry has outperformed its sector and the S&P 500 over the past two years. While stocks in the industry have collectively soared 72.6%, the S&P 500 composite has rallied 42.8%, and the Zacks Finance sector has risen 31.9%.
Two-Year Price Performance
Industry's Valuation Is Attractive
One might get a good sense of the industry’s relative valuation by looking at its price-to-tangible book ratio (P/TBV), commonly used for valuing investment banks because of significant variations in their results from one quarter to the next.
The industry currently has a trailing 12-month P/TBV of 3.32X, above the median level of 2.26X over the past five years. The industry is trading at a considerable discount compared with the market at large, as the trailing 12-month P/TBV for the S&P 500 is 10.16X and the median level is 13.12X.
Price-to-Tangible Book Ratio (TTM)
Finance stocks typically have a lower P/TBV ratio, so comparing investment banks with the S&P 500 may not make sense to many investors. However, comparing the group’s P/TBV ratio with that of the broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/TBV of 6.10X and the median level of 4.87X for the same period are above the Zacks Investment Bank industry’s respective ratios.
Price-to-Tangible Book Ratio (TTM)
3 Investment Bank Stocks to Bet On
Morgan Stanley: It operates globally as an investment banking, securities and investment management company. The key reason for this Zacks Rank #1 (Strong Buy) company’s earnings stability is its business diversification initiatives. You can see the complete list of today’s Zacks #1 Rank stocks here.
New York-based Morgan Stanley is gradually lowering its reliance on capital markets for income generation by expanding wealth and asset management and using acquisitions (Eaton Vance, E*Trade Financial, Shareworks and EquityZen) to broaden distribution. These moves have supported diversification and a more balanced revenue stream across market cycles. As of June 30, 2026, total client assets across the Wealth Management and Investment Management segments reached $10 trillion, meeting a major milestone. This progress reflects strong momentum across Morgan Stanley’s advisor-led, workplace and self-directed platforms, while highlighting its expanding scale in the retirement savings market.
MS’ partnership with Mitsubishi UFJ Financial Group, Inc. will likely continue to support its profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. The move strengthens Morgan Stanley’s foothold in Japan. The company's global platform is increasingly relevant as capital markets activity broadens outside the United States and across Japan, India, China, South Korea, Taiwan and Hong Kong. Continued investment in regional leadership and collaboration should support wallet share gains across Asia's capital markets and wealth opportunity set.
A favorable macroeconomic backdrop is expected to support the company’s IB business, further strengthening its top line. The demand for both advisory and underwriting businesses is likely to rise as corporates become more comfortable with the current economic backdrop. Momentum is expanding beyond the Americas into Asia and EMEA, while active M&A and IPO markets, together with the company’s strong competitive position, should support further growth as the macroeconomic backdrop evolves.
With a market cap of $337.5 billion, MS is expected to continue benefiting from its scale and business expansion efforts. Its shares have jumped 28.6% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings implies a year-over-year rise of 25.3% and 2.1%, respectively.
Price and Consensus: MS
Schwab: With more than $13 trillion in total client assets and a dominant position in both retail brokerage and advisor custody, Schwab benefits from deep client relationships and recurring revenue streams. The company continues to build scale in advice and managed investing, which carries higher revenue per client asset than self-directed activity. This has been driving SCHW’s wealth and banking solutions inflows.
Prior acquisitions, including TD Ameritrade, USAA’s IMCO assets, Wasmer Schroeder and Motif, expanded distribution and product depth, and Forge Global added another capability layer in private markets. Schwab’s scale in both retail and RIA custody continues to translate into durable account growth and net new assets, even in volatile markets. The company continues to add financial consultants and wealth advisers and plans to open new branches. Over time, this mix shift should help Schwab monetize a growing base of client assets with less dependence on episodic trading cycles.
Schwab has moved beyond its AI roadmap into live client deployments, strengthening the potential for technology to deepen engagement and create new monetization avenues. Schwab expanded its digital capabilities with Portfolio Insights, a generative-AI tool for self-directed retail clients, and launched Schwab Crypto, offering direct Bitcoin and Ethereum access. It is also advancing AI-enabled client and advisor tools and invested $65 million in AI-powered wealth-management platform Wealth.com.
A key strength of Schwab is its diversified revenue base, which includes net interest income, asset management fees and advisory services. The company’s scale and trusted platform position it well to serve as a bridge between traditional finance and digital assets, especially as cryptocurrency adoption becomes increasingly mainstream.
With a market cap of $186.9 billion, Schwab is expected to benefit from strategic buyouts, a rise in investing solution fees and by leveraging AI to expand relationship-based business. Shares of this Zacks Rank #2 (Buy) company have risen 13.2% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates a jump of 32.7% and 21.2%, respectively, on a year-over-year basis.
Price and Consensus: SCHW
Interactive Brokers: This Zacks Rank #2 company is a well-known fintech broker. The company’s biggest strength stems from its deep, multi-assetglobal marketaccess, unmatched by most retail and even many institutionally focused competitors. IBKR enables clients to trade across more than 170 markets, dozens of currencies and a wide range of asset classes, including equities, options, futures, foreign exchange, bonds and funds, from a single unified platform.
Another strong aspect of IBKR is technological superiority. This has kept the company’s compensation expense relative to net revenues (9.8% in the first half of 2026) below its industry peers. It has been emphasizing the development of proprietary software to automate broker-dealer functions, leading to a steady rise in revenues. This cost discipline supports competitive pricing and reinvestment capacity as the client base grows.
Interactive Brokers continues to broaden its product suite and enhance platform capabilities, helping expand its addressable client base, deepen engagement and diversify fee-generating opportunities. The continued rollout of differentiated products should strengthen client retention, increase platform usage and create incremental revenue opportunities while helping Interactive Brokers remain competitive in the rapidly evolving electronic brokerage industry.
Interactive Brokers’ technological superiority, along with a more supportive regulatory environment that could improve product velocity, is expected to bolster net revenues by driving higher client acquisitions. Revenues are also likely to benefit from solid Daily Average Revenue Trades and a favorable trading backdrop supported by increased market participation. IBKR continues to scale its international platform to capture rising cross-border investing demand and wealth creation in emerging markets. Its expanding geographic and product footprint will likely support sustained account growth, diversify client activity across regions and strengthen long-term revenue opportunities.
With a market cap of $164.5 billion, Interactive Brokers is expected to continue benefiting from its business expansion efforts and favorable operating environment. Its shares have gained 34.7% over the past six months. The Zacks Consensus Estimate for 2026 and 2027 earnings indicates an increase of 22.8% and 18%, respectively, on a year-over-year basis.
Price and Consensus: IBKR
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
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This article originally published on Zacks Investment Research (zacks.com).

3 Investment Bank Stocks Set to Benefit From Industry Tailwinds

Charles Schwab SCHW is set to face tougher competition in the registered investment advisor (RIA) custody market after Vanguard agreed to acquire Altruist, an AI-forward wealth technology and custody platform. Altruist will remain a standalone business after the deal closes, retaining its leadership, brand and advisor-focused operating model. Vanguard expects its financial strength, investment expertise and reach to accelerate Altruist’s technology and custody capabilities, while giving Vanguard closer access to independent advisors and their clients.
The transaction could intensify pressure on Schwab’s Advisor Services business, the largest RIA custodian by assets. As of June 30, 2026, Schwab served approximately 16,000 advisory firms and held about $5.7 trillion in RIA custodial assets.
Meanwhile, Altruist has been expanding rapidly, with more than 6,000 independent advisors using its platform. The platform integrates self-clearing custody with digital account opening, trading, portfolio management, billing and reporting, while its Hazel AI engine targets workflow efficiency and advisor productivity.
Vanguard’s backing will likely strengthen Altruist’s ability to invest in technology, compete on pricing and attract larger advisory firms. That matters as AI adoption accelerates across the RIA industry. Schwab’s 2026 study found that 63% of advisors were already using AI. The deal may also give Altruist greater credibility with advisors that previously favored established custodians for scale and stability.
Still, Schwab retains significant advantages in assets, advisor relationships, service infrastructure and brand recognition. Thus, the transaction is unlikely to disrupt Schwab’s leadership immediately, but it raises the competitive stakes and could require faster technology investment and sharper pricing to protect market share.
How are SCHW’s Peers Faring in Terms of Product Innovation?
Schwab’s key competitors, Interactive Brokers Group IBKR and Robinhood Markets, Inc. HOOD, have also been rolling out products and services to bolster market share.
Interactive Brokers is broadening its product ecosystem beyond traditional stocks and options by expanding into crypto and crypto futures, prediction markets, AI-enabled trading tools and new international markets. This diversification strengthens client engagement while positioning Interactive Brokers as a multi-asset, global trading platform.
Robinhood is diversifying beyond traditional stock trading through crypto, retirement, credit cards, advisory services, prediction markets and international expansion. This broader ecosystem attracts new customers and assets while increasing platform engagement, creating cross-selling opportunities at Robinhood. This supports higher trading activity across equities, options, futures and digital assets.
Schwab’s Price Performance, Valuation & Estimate Analysis
Over the past six months, Schwab shares have gained 14.6%, underperforming the industry’s growth of 19.3%.
SCHW shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 7.81X compared with the industry average of 3.33X.
The Zacks Consensus Estimate for Schwab’s 2026 earnings suggests year-over-year growth of 32.7%. Earnings are expected to increase another 21.2% in 2027. In the past month, earnings estimates for 2026 and 2027 have been revised higher to $6.46 and $7.83 per share, respectively.
SCHW currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).

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