Back to top

Image: Bigstock

Toronto-Dominion Bank (TD) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Toronto-Dominion Bank (TD - Free Report) closed at $64.24, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily gain of 0.13%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Prior to today's trading, shares of the retail and wholesale bank had lost 2.2% over the past month. This has lagged the Finance sector's gain of 3.26% and the S&P 500's gain of 5.55% 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. On that day, Toronto-Dominion Bank is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 0.63%.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.40 per share and revenue of $33.12 billion, which would represent changes of +1.75% and -2.44%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Toronto-Dominion Bank. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. Toronto-Dominion Bank is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Toronto-Dominion Bank is holding a Forward P/E ratio of 9.92. Its industry sports an average Forward P/E of 8.15, so we one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.

Investors should also note that TD has a PEG ratio of 1.27 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Banks - Foreign stocks are, on average, holding a PEG ratio of 0.79 based on yesterday's closing prices.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TD in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Toronto Dominion Bank The (TD) - free report >>

Published in