Is Charles Schwab Stock Built to Withstand More Downside?
Charles Schwab (SCHW) stock is down 7.2% in 21 trading days. The recent slide reflects renewed concerns around sluggish client cash allocations and normalizing interest income, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Charles Schwab stands today.
- Size: Charles Schwab is a $167 Bil company with $24 Bil in revenue currently trading at $94.38.
- Fundamentals: Last 12 month revenue growth of 22.0% and operating margin of 0.0%.
- Liquidity: Has Debt to Equity ratio of 0.19 and Cash to Assets ratio of 0.22
- Valuation: Charles Schwab stock is currently trading at P/E multiple of 18.9 and P/EBIT multiple of 0.0
- Has returned (median) 78.2% within a year following sharp dips since 2010. See SCHW Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Risky. For details, see Buy or Sell SCHW Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SCHW stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SCHW stock falls another 20-30% to $66 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- SCHW stock fell 50.4% from a high of $95.53 on 14 January 2022 to $47.37 on 4 May 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 July 2025
- Since then, the stock increased to a high of $107.21 on 9 February 2026 , and currently trades at $94.38
| SCHW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -50.4% | -25.4% |
| Time to Full Recovery | 806 days | 464 days |
2020 Covid Pandemic
- SCHW stock fell 42.0% from a high of $49.00 on 16 January 2020 to $28.43 on 12 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 24 November 2020
| SCHW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.0% | -33.9% |
| Time to Full Recovery | 257 days | 148 days |
2018 Correction
- SCHW stock fell 41.1% from a high of $59.59 on 22 May 2018 to $35.10 on 3 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 11 January 2021
| SCHW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -41.1% | -19.8% |
| Time to Full Recovery | 466 days | 120 days |
2008 Global Financial Crisis
- SCHW stock fell 56.4% from a high of $26.00 on 30 September 2008 to $11.34 on 5 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 31 December 2013
| SCHW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.4% | -56.8% |
| Time to Full Recovery | 1,762 days | 1,480 days |
Feeling jittery about SCHW stock? Consider portfolio approach.
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