The latest trading session saw Toronto-Dominion Bank (TD) ending at $60.29, denoting a -1.1% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 1.97%. At the same time, the Dow lost 1.69%, and the tech-heavy Nasdaq lost 2.7%.
The retail and wholesale bank's shares have seen an increase of 1.96% over the last month, surpassing the Finance sector's loss of 0.82% and the S&P 500's loss of 2.79%.
Market participants will be closely following the financial results of Toronto-Dominion Bank in its upcoming release. It is anticipated that the company will report an EPS of $1.25, marking a 16.67% fall compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.40 per share and a revenue of $42.17 billion, representing changes of -5.92% and +0.47%, respectively, from the prior year.
Any recent changes to analyst estimates for Toronto-Dominion Bank should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.58% lower. Right now, Toronto-Dominion Bank possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Toronto-Dominion Bank has a Forward P/E ratio of 11.3 right now. Its industry sports an average Forward P/E of 9.89, so one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.
We can additionally observe that TD currently boasts a PEG ratio of 1.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Banks - Foreign industry stood at 1.08 at the close of the market yesterday.
The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 25% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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