By Sam Boughedda
Investing.com -- Charles Schwab Corp (NYSE:SCHW) is poised to benefit in the early stages of a Federal Reserve policy tightening cycle, according to Deutsche Bank analyst Brian Bedell, who called the brokerage firm a "Catalyst Call: Buy Idea."
The analyst put Schwab on the list as a short-term investment idea hedged against the S&P 500 Index.
The analyst believes "investors will more fully embrace the magnitude of the earnings leverage to the earliest stages of an expected FOMC tightening cycle, and this will become evident in 1Q22 earnings results."
Furthermore, he also sees the company's "earnings growth profile (estimating EPS growth of 36% this year) as being relatively defensive in an equity market correction scenario, relative to many other market-sensitive financials."
After an initial move higher Friday, Charles Schwab shares are now down 0.3%, adding to Thursday's 3.7% loss.