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Why Toronto-Dominion Bank (TD) Outpaced the Stock Market Today

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Toronto-Dominion Bank (TD - Free Report) ended the recent trading session at $96.07, demonstrating a +1.24% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.41%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq gained 0.91%.

Shares of the retail and wholesale bank witnessed a gain of 0.34% over the previous month, beating the performance of the Finance sector with its loss of 0.45%, and underperforming the S&P 500's gain of 0.38%.

Market participants will be closely following the financial results of Toronto-Dominion Bank in its upcoming release. The company is predicted to post an EPS of $1.57, indicating a 12.95% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $11.14 billion, indicating a 14.85% upward movement from the same quarter last year.

TD's full-year Zacks Consensus Estimates are calling for earnings of $6.42 per share and revenue of $46.51 billion. These results would represent year-over-year changes of +7.36% and -7.56%, respectively.

It is also important to note the recent changes to analyst estimates for Toronto-Dominion Bank. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Toronto-Dominion Bank holds a Zacks Rank of #2 (Buy).

Investors should also note Toronto-Dominion Bank's current valuation metrics, including its Forward P/E ratio of 14.78. This valuation marks a premium compared to its industry average Forward P/E of 11.56.

We can additionally observe that TD currently boasts a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Banks - Foreign stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 39, this industry ranks in the top 16% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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