What makes Schwab interesting is that this is more than a traditional bank trade. It benefits from rising client assets, stronger trading activity and growing banking revenue. Q2 revenue reached a record $7.1B, up 21% YoY, while adjusted EPS jumped 42%.
I also like BNY as a second choice because its custody and asset-servicing business gives it a different growth engine from traditional lenders.
That said, I wouldn’t chase every bank at all-time highs. Earnings momentum is real, but valuations are also moving higher. A pullback could offer a much better risk/reward entry.
My vote: A — U.S. Banks & Brokers.
My pick: SCHW.
30-day dark horse: BNY.
The bank rally still has fuel, but from here, stock selection matters more than simply buying the sector.
@TigerPicks [财迷]
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