Schwab US Dividend Equity ETF Sees Solid Gains

Schwab US Dividend Equity ETF ( $SCHD ) has risen by 2.19% in the past week. It has experienced a 5-day net inflow of $51.44 million.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Lockheed Martin has surged about 9% in the past week and more than 30% over the past year as investors position ahead of its January 29 earnings report, betting on its massive $179 billion order backlog and strong demand for F‑35 jets and missile-defense systems like JASSM, LARASM and PAC‑3. While some units still face legacy program headwinds, new contract awards expected later this year could push the backlog to fresh records and support long-term growth. Analyst sentiment is cautious: most rate the stock a Hold with a Moderate Buy tilt, and average price targets now sit slightly below the current share price after the sharp rally, prompting several downgrades to Hold even as others reiterate Buy ratings with targets in the mid‑$600s. Wall Street is looking for solid Q4 revenue and earnings growth, but with valuation stretched, the key question for investors is whether guidance and new contracts can justify further gains or trigger profit-taking.
• Texas Instruments delivered a mixed picture in its latest update, combining strong structural growth with near-term caution. Q4 revenue grew 10% year over year to $4.4 billion, led by double‑digit gains in its core analog and embedded businesses and explosive data-center growth of about 70%, while industrial and automotive each generated $5.8 billion in 2025 revenue and now account, alongside data center, for roughly three‑quarters of the company’s sales. Profitability remains healthy, with a 56% gross margin and robust free cash flow that nearly doubled in 2025 as TI nears the end of a heavy investment cycle and begins to benefit from government CHIPS incentives and cost-efficient 300mm fabs. Still, sequential revenue declined, margins compressed, and personal electronics and communications stayed weak, with inventories and debt levels worth watching. The stock has drawn a wave of fresh analyst coverage after Q4 results that missed estimates: overall the consensus is around Hold/Moderate Buy, with price targets clustered in the low‑$200s and only modest upside implied, as analysts balance TI’s long-term strength in industrial, automotive and AI‑driven data-center demand against typical semiconductor cycles and macro uncertainty.
• Chevron is navigating softer commodity prices with resilient operations and strong analyst support ahead of, and now following, its Q4 2025 earnings. The company posted adjusted EPS of $1.52 on revenue of $46.87 billion, slightly beating expectations but down sharply year over year as lower crude prices and currency headwinds offset record 2025 production of about 4 million barrels of oil equivalent per day, including a 16% jump in U.S. output and a key milestone in the Permian Basin reaching 1 MBOE/d. Despite weaker profits, Chevron’s operating cash flow climbed 24% and free cash flow 25% in Q4, helped by the integration of its $55 billion Hess acquisition, which investors view as a major long-term growth and cash engine alongside potential upside from expanded Venezuela operations and debottlenecking projects in Guyana and Kazakhstan. Wall Street remains firmly bullish: the stock carries a Strong Buy consensus with most targets in the high‑$170s to high‑$180s, implying mid‑single‑digit upside plus a dividend yield around 4.5%, while options markets are pricing in only a small post‑earnings move—suggesting investors see Chevron as a relatively steady way to gain oil exposure despite a downtrend in earnings from 2022 peaks.