Is Schwab a Buy as Product Diversification Unlocks Next Growth Phase?

Charles Schwab is expanding beyond traditional brokerage into wealth management, banking, lending, active trading, and crypto. The company reported 18% revenue growth to $13.6B and 41% earnings growth in H1 2026, with strong organic asset gathering of $58.1B in July. While trading at a premium valuation (7.73X tangible book vs. 3.32X industry average), improving earnings prospects and diversified revenue streams support a favorable investment case. Schwab received a Zacks Rank #2 (Buy) rating.