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Toronto-Dominion Bank (TD) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Toronto-Dominion Bank (TD - Free Report) closed at $74.38 in the latest trading session, marking a +1% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.52%. Elsewhere, the Dow saw an upswing of 1.89%, while the tech-heavy Nasdaq appreciated by 1.88%.

Shares of the retail and wholesale bank have depreciated by 1.63% over the course of the past month, underperforming the Finance sector's gain of 1.71%, and the S&P 500's gain of 1.1%.

The investment community will be paying close attention to the earnings performance of Toronto-Dominion Bank in its upcoming release. The company is slated to reveal its earnings on August 28, 2025. The company is forecasted to report an EPS of $1.46, showcasing a 2.67% downward movement from the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $5.77 per share and a revenue of $43.92 billion, demonstrating changes of +0.52% and +4.65%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Toronto-Dominion Bank. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.99% rise in the Zacks Consensus EPS estimate. Toronto-Dominion Bank is currently a Zacks Rank #3 (Hold).

In terms of valuation, Toronto-Dominion Bank is currently trading at a Forward P/E ratio of 12.76. This denotes a premium relative to the industry average Forward P/E of 10.63.

It is also worth noting that TD currently has a PEG ratio of 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Banks - Foreign industry was having an average PEG ratio of 1.03.

The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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