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Is The Toronto Dominion Bank (TD) Stock Outpacing Its Finance Peers This Year?

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For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Toronto-Dominion Bank (TD - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.

Toronto-Dominion Bank is a member of our Finance group, which includes 870 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Toronto-Dominion Bank is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for TD's full-year earnings has moved 6.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, TD has gained about 38.2% so far this year. Meanwhile, stocks in the Finance group have gained about 8.4% on average. As we can see, Toronto-Dominion Bank is performing better than its sector in the calendar year.

Another Finance stock, which has outperformed the sector so far this year, is Bankinter SA (BKNIY - Free Report) . The stock has returned 71.2% year-to-date.

Over the past three months, Bankinter SA's consensus EPS estimate for the current year has increased 15.7%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Toronto-Dominion Bank belongs to the Banks - Foreign industry, a group that includes 67 individual companies and currently sits at #13 in the Zacks Industry Rank. On average, this group has gained an average of 25.8% so far this year, meaning that TD is performing better in terms of year-to-date returns. Bankinter SA is also part of the same industry.

Going forward, investors interested in Finance stocks should continue to pay close attention to Toronto-Dominion Bank and Bankinter SA as they could maintain their solid performance.


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