Shares of Toronto-Dominion Bank (TD Quick QuoteTD - Free Report) have been strong performers lately, with the stock up 8.6% over the past month. The stock hit a new 52-week high of $88.79 in the previous session. Toronto-Dominion has gained 65.5% since the start of the year compared to the 15.1% gain for the Zacks Finance sector and the 48.1% return for the Zacks Banks - Foreign industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 4, 2025, Toronto-Dominion reported EPS of $1.57 versus consensus estimate of $1.46.

For the current fiscal year, Toronto-Dominion is expected to post earnings of $6.42 per share on $46.51 in revenues. This represents a 7.36% change in EPS on a -7.37% change in revenues.

Valuation Metrics

While Toronto-Dominion has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Toronto-Dominion has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 13.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.5X. On a trailing cash flow basis, the stock currently trades at 12.1X versus its peer group's average of 10.4X. Additionally, the stock has a PEG ratio of 1.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Toronto-Dominion currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Toronto-Dominion meets the list of requirements. Thus, it seems as though Toronto-Dominion shares could have a bit more room to run in the near term.

How Does TD Stack Up to the Competition?

Shares of TD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ICICI Bank Limited (IBN Quick QuoteIBN - Free Report) . IBN has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.

Earnings were strong last quarter. ICICI Bank Limited beat our consensus estimate by 5.41%, and for the current fiscal year, IBN is expected to post earnings of $1.61 per share on revenue of $13.6 billion.

Shares of ICICI Bank Limited have gained 0% over the past month, and currently trade at a forward P/E of 18.92X and a P/CF of 18.36X.

The Banks - Foreign industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TD and IBN, even beyond their own solid fundamental situation.