The San Francisco-based savings and loan holding company is engaged in wealth management, securities brokerage, banking, money management and financial advisory services.
Jefferies also decreased its fiscal 2016 earnings per share estimate to $1.24 from $1.27, reflecting the timing of future interest rate hikes. This is offset by the company's faster-than-expected balance sheet growth.
"Flow trends remained strong with +$8.1 billion and +$10.9 billion of net inflows in January and February, respectively. Expense growth will remain in focus with the potential for a 10% year-over-year increase forecasted at the most recent winter business update albeit with the ability to toggle back that number depending on market backdrop (most likely Fed driven)," the firm wrote in a note.
Shares of Charles Schwab are down by 1.8% to $27.33 at the start of trading on Thursday.
Separately, TheStreet Ratings Team has a "Buy" with a ratings score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: SCHW