Here's Why Toronto-Dominion Bank (TD) Fell More Than Broader Market

By Zacks Equity Research | November 04, 2025, 6:15 PM

In the latest close session, Toronto-Dominion Bank (TD) was down 1.7% at $80.54. This change lagged the S&P 500's 1.17% loss on the day. Meanwhile, the Dow experienced a drop of 0.53%, and the technology-dominated Nasdaq saw a decrease of 2.04%.

The stock of retail and wholesale bank has risen by 0.86% in the past month, leading the Finance sector's loss of 1.24% and undershooting the S&P 500's gain of 2.12%.

Market participants will be closely following the financial results of Toronto-Dominion Bank in its upcoming release. The company plans to announce its earnings on December 4, 2025. The company is forecasted to report an EPS of $1.47, showcasing a 16.67% upward movement from the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.87 per share and revenue of $0 million, indicating changes of +2.26% and 0%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Toronto-Dominion Bank is carrying a Zacks Rank of #2 (Buy).

Investors should also note Toronto-Dominion Bank's current valuation metrics, including its Forward P/E ratio of 12.98. This represents a premium compared to its industry average Forward P/E of 11.01.

It's also important to note that TD currently trades at a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TD's industry had an average PEG ratio of 1.05 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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This article originally published on Zacks Investment Research (zacks.com).

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