The Charles Schwab Corporation

The Charles Schwab Corporation (NYSE: SCHW) is a savings and loan holding company. It offers wealth management, securities brokerage, banking, asset management, custody, and financial advisory services through its subsidiaries.

Key Highlights

• The company reported a surge of 85% in total revenue to USD 4.53 billion in Q2FY21 (ended June 30, 2021) compared to USD 2.45 billion in Q2FY20.
• Net income for Q2FY21 expanded by 80% to USD 1.12 billion from USD 621 million in Q2FY20.
• Relatively low ROE of 8.5% in FY20, whereas the industry median stood at 12%.
• On June 23, 2021, SCHW launched new digital onboarding capabilities for its independent advisor clients, who can now open, fund and set up multiple account types in a 100% digital process.
• As announced on April 29, 2021, Schwab Asset Management, a division of SCHW, launched the trading of Schwab International Dividend Equity ETF (SCHY) on the NYSEARCA. This ETF offers international dividend equities with a low operating expense ratio (OER) of 0.14%.
• Stock is currently trading above its crucial long-term support level of 200-day SMA.
• Stock is currently leaning towards the higher band of the 52-week range of USD 32.79 to USD 76.37.
• SCHW’s share price increased 23.60% and 58.39% in the past 6 and 9 months, respectively.
  
  

Technical Price Chart (as of August 03, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we feel the current share price adequately reflects the robust business fundamentals and choose to remain on the sidelines. Hence, we recommend an “Expensive” rating on the stock at the closing price of USD 67.41, down 0.49% as of August 03, 2021.

*The reference data in this report has been partly sourced from REFINITIV. 

ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc. (NASDAQ: CNOB) is the holding company of ConnectOne Bank, a New Jersey-based chartered commercial bank. It offers loan and deposit products and other financial services to individuals and businesses through its 25 banking centers.

Key Highlights

• The company reported a slight growth of 3.65% in net interest income to USD 63.01 million in Q2FY21 (ended June 30, 2021) compared to USD 60.79 million in Q2FY20.
• Low efficiency ratio of 64.2% in FY20, whereas the industry median stood at 71.2%.
• Net income for Q2FY21 expanded by 117.27% to USD 32.22 million from USD 14.83 million in Q2FY20.
• Stock is currently trading above its 200-day SMA, a crucial long-term support level. On a short-term basis, its current price is close to the 50-day SMA level.
• Stock is currently leaning towards the higher band of the 52-week range of USD 13.48 to USD 28.72.
• CNOB’s share price has increased 2.64% in past one month and decreased 5.88% in past three months.

Technical Price Chart (as of August 03, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in past three months, robust track record of loan and deposits growth, surge in net income, and associated risks, we recommend a "Watch” rating on the stock at the closing price of USD 26.40, up 1.34% as of August 03, 2021.

*The reference data in this report has been partly sourced from REFINITIV.