Toronto-Dominion Bank (TD) closed at $94.52 in the latest trading session, marking a +1.1% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 1.05%, while the tech-heavy Nasdaq appreciated by 0.56%.
Shares of the retail and wholesale bank witnessed a loss of 1.11% over the previous month, trailing the performance of the Finance sector with its loss of 0.18%, and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of Toronto-Dominion Bank in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.57, indicating a 12.95% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $11.14 billion, reflecting a 14.85% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.42 per share and revenue of $46.51 billion. These totals would mark changes of +7.36% and -7.56%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Toronto-Dominion Bank holds a Zacks Rank of #2 (Buy).
In terms of valuation, Toronto-Dominion Bank is currently trading at a Forward P/E ratio of 14.56. This signifies a premium in comparison to the average Forward P/E of 11.62 for its industry.
It is also worth noting that TD currently has a PEG ratio of 1.3. 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 1.04 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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