Despite having once been one of the better stocks to own for exposure to the e-commerce industry, PayPal Holdings Inc (NASDAQ: PYPL) has recently fallen on hard times. Its shares have been sinking since they last tagged an all-time high in July 2021, when the pandemic had more p
A raid by French authorities of the offices of a technology firm named as Nvidia in media reports is the latest among a string of such actions by European regulators as they look to check the dominance of Big Tech companies from thwarting competition.
U.S. stock index futures advanced on Friday as Treasury yields eased from multi-year highs and powered gains in growth stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
A raid by French authorities of the offices of a technology firm named as Nvidia in media reports is the latest among a string of such actions by European regulators as they look to check the dominance of Big Tech companies from thwarting competition.
There's little question that 2023 will likely go down in history as the year artificial intelligence (AI) came of age. While the technology has been around for decades, recent developments in the field have ignited an AI arms race, with each of the biggest tech companies scrambli
The world's leading e-commerce company, Amazon (NASDAQ: AMZN), announced that it was investing up to $4 billion in a young artificial intelligence company called Anthropic. This news comes just eight months after fellow tech giant Microsoft announced that it was investing an addi
Which stocks are best to buy now? According to Top Wall Street Analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating yesterday and has a significant upside as well.
To find more stocks like these, take a look at TipRanks’
Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by Top-ranking Analysts.
Here are today’s top stock picks, according to analysts. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Meta Platforms (
NASDAQ:META)
– Meta
provides technologies that help people connect, find communities, and grow businesses. Yesterday,
Loop Capital Markets analyst Rob Sanderson and five other Top Analysts assigned a Buy rating on the stock. In the last three months, 33 out of the 34 Top Analysts rated the stock a Buy. Collectively, their 12-month price targets imply an upside of nearly 25%.
Amazon (
NASDAQ:AMZN)
– This multinational tech giant provides e-commerce, cloud computing, digital streaming, and artificial intelligence services. Yesterday,
D.A. Davidson analyst Tom Forte reiterated a Buy rating on the stock with a price target of $150. Interestingly, all 33 Top Analysts who recently rated the stock gave it a Buy. Taken together, their 12-month price targets imply an upside of about 40%.
Blue Bird (
NASDAQ:BLBD
) – This company designs and manufactures school buses. Yesterday,
Craig-Hallum analyst Eric Stine assigned a Buy rating on the stock. BLBD stock has received Buy recommendations from all three Top Analysts who have recently rated it. Overall, the consensus 12-month price target suggests an increase of about 22%.
Who are the Top Analysts?
TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’
Top Wall Street Analysts page.
Disclosure
The artificial intelligence (AI) revolution kicked into a higher gear this year. In January, Microsoft added $10 billion to its $3 billion stake in ChatGPT developer OpenAI, and that kicked off an arms race among tech giants to embed AI technologies into their businesses.
Percentages can be deceiving. While a decline of 8% isn't a disaster, when we're talking about a company that's worth well over $1 trillion on the stock market, it amounts to tens of billions of dollars in lost value. That happened to Amazon (NASDAQ: AMZN) during the week of Sept
Warren Buffett once said that "all there is to investing is picking good stocks at good times and staying with them as long as they remain good companies." Wow! In one sentence, he just encapsulated what it means to be a long-term investor. And that means every company isn't a "h
Many investors may own Amazon (NASDAQ: AMZN) and Apple (NASDAQ: AAPL) in their portfolios but may have a difficult time choosing which stock is a better buy right now. These are both dominant businesses in their respective industries with great growth prospects, so either stock w
Amazon (NASDAQ: AMZN) and Disney (NYSE: DIS) are two very different companies, but they're both giants in their industries. They've also both captured investor attention -- deservedly so.
U.S. stock index futures rose on Friday as Treasury yields eased from multi-year highs and powered gains in megacap stocks, while investors awaited a crucial inflation metric to assess the outlook for the Federal Reserve's monetary policy.
Amazon's (NASDAQ: AMZN) core strategy has long been to go after market share and deliver profits later, once it's accumulated a critical mass of customers.
With so many exciting stocks out there, it's sometimes hard to decide on just a few to add to your portfolio at a particular time. But it's possible to make the right choice -- one that could help you on your path to wealth over the long term.
The Federal Trade Commission and 17 U.S. State Attorneys General have filed suit against Amazon.com (NASDAQ: AMZN), accusing the e-commerce giant of unfair and anti-competitive business practices. In this video, Motley Fool contributors Jason Hall and Jeff Santoro explain what's
As the final stretch of the year approaches, there's relief in markets that the sharpest global monetary tightening cycle in decades is finally nearing an end.
Unseasonably warm autumn weather from the United States to Europe is denting sales of heavy sweaters and coats as the critical holiday shopping period approaches, executives at major retailers including H&M said, and some stores are already slashing prices to avoid piles of unsold inventory.
The
Schwab U.S. Large-Cap ETF (
NYSEARCA:SCHX)
stands out as an attractive investment opportunity for its minimal fees, diversified portfolio of large-cap,
blue-chip U.S. stocks, and the solid returns it has generated over the years. Therefore, let’s take a look at this $32.8 billion large-cap fund from Charles Schwab (
NYSE:SCHW
).
What is the SCHX ETF’s Strategy?
Charles Schwab explains that SCHX’s “goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Total Stock Market Index.” Doing this gives investors “simple access to the 750 largest U.S. companies as ranked by full market capitalization.”
SCHX's Holdings
One thing that I really like about the Schwab U.S. Large-Cap ETF is that it offers investors real diversification. One way that SCHX does this is by holding positions in 755 stocks. However, many funds own a lot of stocks but are less diversified than this would imply because their top holdings account for a large portion of the fund, often greater than 50% or even higher.
That isn’t the case at all with SCHX, which offers true diversification in that its top 10 holdings account for just 28.4% of the fund. By holding an extra 250 or so stocks, SCHX also offers a bit more diversification than the typical S&P 500 (
SPX
) fund.
Below, you’ll find an overview of
SCHX’s top 10 holdings using TipRanks’ holdings tool.
As its name implies, SCHX’s top 10 holdings consist of blue chip, large-cap U.S. stocks like Apple (
NASDAQ:AAPL
), Microsoft (
NASDAQ:MSFT
), Amazon (
NASDAQ:AMZN
), Nvidia (
NASDAQ:NVDA
) and Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
). While SCHX is not a tech ETF, its top holdings currently skew heavily toward technology because these are the largest stocks in the market right now.
But once you get outside of these top holdings, SCHX owns plenty of non-tech names, and its holdings run the gamut of the U.S. economy. In fact, breaking it down by sector, technology accounts for just 28% of SCHX's holdings.
Healthcare is the fund's second-largest sector with a weighting of 13.3%, and the sector is well-represented through the likes of UnitedHealth (
NYSE:UNH
), Eli Lilly (
NYSE:LLY
) and Johnson & Johnson (
NYSE:JNJ
). Financials come in third with a 12.7% weighting and include stocks like Berkshire Hathaway (
NYSE:BRK.B
), JPMorgan Chase (
NYSE:JPM
), Visa (
NYSE:V
), and Mastercard (
NYSE:MA
).
This well-rounded group of holdings enables investors to harness the power of a large portion of the U.S. economy in their portfolios using one ETF.
Is SCHX Stock a Buy, According to Analysts?
Turning to Wall Street, SCHX earns a Moderate Buy consensus rating based on 606 Buys, 138 Holds, and 11 Sell ratings assigned in the past three months. The
average SCHX stock price target of $61.05 implies 20.4% upside potential.
Get Smart
While Wall Street analysts are bullish on SCHX, so is TipRank’s Smart Score system. The
Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It gives stocks a score from 1 to 10 based on eight market key factors. A score of 8 or above is equivalent to an Outperform rating. SCHX features an Outperform-equivalent ETF Smart Score of 8.
Long-Term Performance
In addition to its strong portfolio of diversified holdings, favorable consensus rating from analysts, and Outperform-equivalent Smart Score, SCHX also has a solid track record of long-term performance.
Over the past three years, SCHX has had an annualized return of 9.9% (as of the end of August). Over the past five years, SCHX’s annualized return stands at 10.8%, and over the past 10 years, it comes in at an even better 12.6%.
These results are roughly on par with those of the broader market over time, albeit trailing them by a narrow margin. The
SPDR S&P 500 ETF (
NYSEARCA:SPY)
, a good representation of the S&P 500 index, has returned 10.4% over the past three years, 11.0% over the past five years, and 12.7% over the past 10 years. While SPY narrowly beats SCHX over these time frames, the difference is relatively marginal (amounting to a 0.1% difference annualized over 10 years), and both ETFs have generated great returns for their investors.
Below, you'll find
a comparison of SCHX and SPY using TipRanks' ETF comparison tool, which allows investors to compare up to 20 ETFs at a time based on a wide variety of customizable factors.
Tiny Expense Ratio
SCHX is notable for its minuscule expense ratio of just 0.03%, which is just about as low as you will find in today’s market. This ultra-low expense ratio means that an investor putting $10,000 into SCHX would pay just $3 in fees during their first year of investing in the fund.
The effect of these savings really adds up over time. Assuming the fund returns 5% a year going forward and the expense ratio remains 0.03%, after three years, this same investor would pay just $10 in fees. After five years, this investor would pay just $17 in fees, and over the course of a decade, this investor would pay just a paltry $39 in fees. Investing in low-cost funds like SCHX is key for preserving the principal value of your portfolio over time.
Dividend Payout
It should also be noted that
SCHX is a dividend payer. While SCHX's dividend yield of 1.5% isn't enough to put it on the radar of income investors, it still adds to total returns over time. Furthermore, SCHX has been paying its holders a dividend for 13 consecutive years, and there is plenty of room for this dividend payout to grow over time as the companies it owns grow their earnings and increase their own payouts over the years.
Investor Takeaway
Ultimately, SCHX is an attractive option for investors to consider adding to their investment portfolios. The fund has produced double-digit annualized returns over the past decade. Additionally, it features a negligible expense ratio, and it gives investors plenty of diversification, both in terms of the large number of stocks that it holds and its low concentration towards its top 10 holdings.
Lastly, SCHX also enjoys a favorable outlook from analysts and an outperform-equivalent Smart Score from TipRanks. Altogether, there are plenty of reasons to like this ETF.
Disclosure