Uh-oh, it is looking like the sword of Damocles in the shape of Greece has returned, and back with it the volatility that we experienced a few years ago. What that means for investors looking beyond the current volatility is the time has come to only make very solid growth stock purchases. In a new research note, Jefferies has locked down four solid ideas to buy for this week.
The Jefferies team is doing the right thing and staying away from high-volatility momentum stocks that will get bogged down if we get stuck in a correction. This week’s four top U.S. Growth Calls are all companies that have solid staying power and are not overvalued.
The iconic discount broker looks solid from a technical standpoint. The Charles Schwab Corp. (NYSE: SCHW) provides wealth management, securities brokerage, banking, money management and financial advisory services. It operates through two segments: Investor Services and Advisor Services.
Goldman Sachs recently upgraded the discount broker on the belief that the earnings outlook is underappreciated given the potential for deposit growth in an environment of rising interest rates. The Goldman analyst noted that Schwab has identified $75 billion worth of customer assets it can sweep in its banking business could “meaningfully” add to earnings. A rising rate environment tends to benefit banks because it allows them to earn a higher spread between what they pay and receive in interest.
Charles Schwab investors are paid a slight 0.72% dividend. The Jefferies price target for the stock is $35, and the consensus price target is $34.58. Shares closed Monday at $33.05.
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