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Toronto Dominion Bank (The) (TD) Hit a 52 Week High, Can the Run Continue?

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Shares of Toronto-Dominion Bank (TD - Free Report) have been strong performers lately, with the stock up 13.3% over the past month. The stock hit a new 52-week high of $94.98 in the previous session. Toronto-Dominion has gained 77.6% since the start of the year compared to the 17.6% gain for the Zacks Finance sector and the 54.6% 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 -7.56% change in revenues.

Valuation Metrics

Though Toronto-Dominion has recently hit a 52-week high, what is next for Toronto-Dominion? 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 these give investors a variety of ways to comb 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. The idea behind the style scores is to help investors 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 C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.5X. On a trailing cash flow basis, the stock currently trades at 13X versus its peer group's average of 11.4X. Additionally, the stock has a PEG ratio of 1.32. 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 rising earnings estimates.

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 Deutsche Bank Aktiengesellschaft (DB - Free Report) . DB has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of C.

Earnings were strong last quarter. Deutsche Bank Aktiengesellschaft beat our consensus estimate by 19.75%, and for the current fiscal year, DB is expected to post earnings of $4.12 per share on revenue of $37.06 billion.

Shares of Deutsche Bank Aktiengesellschaft have gained 9.3% over the past month, and currently trade at a forward P/E of 10.67X and a P/CF of 12.81X.

The Banks - Foreign industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TD and DB, even beyond their own solid fundamental situation.


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