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Toronto-Dominion Bank (TD) Gains But Lags Market: What You Should Know

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Toronto-Dominion Bank (TD - Free Report) closed the most recent trading day at $63.81, moving +0.2% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.07%.

Prior to today's trading, shares of the retail and wholesale bank had lost 5.95% over the past month. This has lagged the Finance sector's gain of 4.65% and the S&P 500's gain of 7.25% in that time.

Investors will be hoping for strength from Toronto-Dominion Bank as it approaches its next earnings release, which is expected to be August 25, 2022. The company is expected to report EPS of $1.59, down 0.63% from the prior-year quarter.

TD's full-year Zacks Consensus Estimates are calling for earnings of $6.40 per share and revenue of $33.12 billion. These results would represent year-over-year changes of +1.75% and -2.44%, respectively.

Investors should also note any recent changes to analyst estimates for Toronto-Dominion Bank. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. Toronto-Dominion Bank currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Toronto-Dominion Bank is holding a Forward P/E ratio of 9.95. Its industry sports an average Forward P/E of 8.27, so we one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.

Also, we should mention that TD has a PEG ratio of 1.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Foreign was holding an average PEG ratio of 0.8 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 130, which puts it in the bottom 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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