Stocks to buy

3 Long-Term Winners from Charles Schwab’s Top Picks

Despite markets continuing at record highs, Charles Schwab (NYSE:SCHW) Investment Management still identifies investment opportunities within long-term stocks. According to its recent filings, the respected investment house perceives potential upside in interesting companies, increasing holdings.

The top 5 Charles Schwab stocks include Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) stakes. These are the long-term stocks to which Charles Schwab allocates the most capital. Evidently, the prominent investment house remains highly confident in its substantial bet on Microsoft, having also purchased in the filing period. If one of the largest investment firms accumulates the long-term stock MSFT, it appears to be a sound investment for the long haul.

But beyond high-profile names, what additional long-term stocks may offer opportunities within the latest moves of Charles Schwab?​

Microsoft (MSFT)

Source: The Art of Pics /

As one of the largest holdings for many Charles Schwab investment portfolios focused on long-term stocks, Microsoft saw its shares increase substantially over the last year. The software giant experienced impressive growth of around 70% in its stock price during 2023. However, this level of growth has been common for Microsoft over the long term, with its shares increasing almost ten-fold in value in the past decade alone.

Charles Schwab analysts believe that Microsoft can continue expanding its business and market share for many years. Even though some commentators worry about a tech bubble given high valuations across the sector, Schwab’s ongoing increases in its holdings of Microsoft shares show faith that the company remains well-positioned as a long-term stock pick.

With a current price-to-earnings (P/E) ratio of 37x and anaverage price target of $456 per share, Charles Schwab continues to see upside potential in holding Microsoft as a core long-term stock within its client investment portfolios.

Merck (MRK)

Source: Atmosphere1 /

Merck (NYSE:MRK), one of the long-term stocks featured in recent Charles Schwab stock picks, has witnessed its P/E ratio expand considerably. From late 2023 through to the present, its valuation increased substantially from 19.4 to 71.

The company relies heavily on its cancer treatment drug Keytruda, which recently received expanded approval for use within the European Union. Analysts consider the now long-term stock to have further growth potential moving forward and also view Merck as well positioned to withstand a potential economic downturn due to the nature of its operations.

According to its most recent quarterly disclosures, the Charles Schwab stock has received a sizable investment, totaling over half a billion U.S. dollars.​​

Veralto Holdings (VLTO)

Source: Chompoo Suriyo /

This relatively unknown long-term stock, Veralto (NYSE:VLTO) is among the newest additions to Charles Schwab stock holdings, standing out as the new pick in which Schwab acquired the most of, worth $91.5 million. The company provides water treatment and water quality solutions and posted relatively modest Q4 results last month.

The company saw sales increase by 3% over the last year and forecast similar growth for the coming year. Analysts also see modest similar growth in the company’s share price this year. Overall, it seems the interest in the long-term stock is based on expectations that it will deliver solid, albeit modest, growth in the coming years as water scarcity becomes a top concern when exacerbated by climate change.

The company trades at a P/E ratio of 25.5x, slightly below the benchmark S&P 500 index’s 27.6x times.​


On the date of publication, Stavros Tousios did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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