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Shares of The Toronto-Dominion Bank (TD - Snapshot Report), also known as TD Bank, crafted a new 52-week high, touching $51.35 on Jun 27. However, the stock of this Canadian bank closed the session at $51.36, reflecting a solid year-to-date return of 11.9%. The trading volume for the session was 686,645 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given the strong estimate revisions it witnessed over the last 60 days. Further, the long-term expected EPS growth rate now stands at 12.0%.

Growth Drivers

Impressive second-quarter 2014 (ended Apr 30) results backed by an improved top line and assets growth were the primary drivers for TD Bank.

On May 22, TD Bank came out with robust fiscal second-quarter 2014 earnings. Adjusted earnings of C$1.09 per share compared favorably with C$0.95 earned in the prior-year quarter. Moreover, adjusted net income was C$2.07 billion ($1.87 billion), up 13.5% year over year.
 
Increase in both net interest income and non-interest income resulted in a 12.1% rise in total revenue (on an adjusted basis) on a year-over-year basis to C$7.44 billion ($6.73 billion). Total provision for credit losses were C$392 million ($354 million), down 6.0% from the comparable quarter in the previous fiscal year.

Further, total assets were C$896.47 billion ($815.43 billion) as of Apr 30, 2014, reflecting a year-over-year increase of 8.5%. However, on the downside, adjusted non-interest expenses were C$3.92 billion ($3.54 billion), up 11.3% year over year.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for 2014 advanced 2.6% to $3.96 per share. Also, for 2015, it moved north 2.4% to $4.29 per share.

Some other top-ranked stocks in the foreign banks space include Brazil-based Banco do Brasil S.A. (BDORY), Argentinia’s BBVA Banco Franc (BFR - Snapshot Report) and U.K based-The Royal Bank of Scotland Group plc (RBS - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).

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Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
BANCO DO BR… BDORY 16.78 +8.05%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%