Toronto-Dominion Bank (TD) closed at $74.43 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.38%.
The stock of retail and wholesale bank has risen by 3.81% in the past month, lagging the Finance sector's gain of 4.07% and the S&P 500's gain of 5.35%.
The investment community will be closely monitoring the performance of Toronto-Dominion Bank in its forthcoming earnings report. On that day, Toronto-Dominion Bank is projected to report earnings of $1.41 per share, which would represent a year-over-year decline of 6%.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and a revenue of $43.92 billion, indicating changes of -0.52% and +4.65%, respectively, from the former year.
Any recent changes to analyst estimates for Toronto-Dominion Bank should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Toronto-Dominion Bank is holding a Zacks Rank of #1 (Strong Buy) right now.
With respect to valuation, Toronto-Dominion Bank is currently being traded at a Forward P/E ratio of 12.88. This valuation marks a premium compared to its industry average Forward P/E of 9.94.
We can also see that TD currently has a PEG ratio of 1.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Foreign industry had an average PEG ratio of 1 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Toronto Dominion Bank (The) (TD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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