Nearly every market sector has been hit hard in the past week amid rising global tariffs and retaliatory measures. However, all sectors are different, and some of today’s selloff could be overdone.
Even if the tariff situation gets worse before it gets better, some companies could actually benefit from the rising fears right now. That includes wealth management companies, who have no product that could be impacted by tariffs, and whose services are needed as much as eve
For instance, The Charles Schwab Corporation (SCHW) slid 8% last Friday alone. Year-to-date, shares have now given up all their gains, and over the last 12 months, shares are up just 4%.
However, Schwab’s earnings could rise amid increased trading activity, even higher than 2024’s 17% jump in revenues.
Plus, Schwab earns a hefty 30% profit margin, so increased trading should reward shareholders with higher profits, as Schwab’s customers wait out the current market fear.
Action to take: Schwab is well valued at 18 times forward earnings, especially if its growth can accelerate with increased financial activity. Schwab also pays a 1.4% dividend, which it has a history of increasing over time.
For traders, shares are likely to bounce just as quickly as they’ve sold off in a market rebound. The July $80 calls, last trading for about $2.45, could see mid-to-high double-digit returns.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.