Toronto-Dominion Bank (TD) closed the most recent trading day at $61.96, moving +1.87% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 2.51% for the day. Elsewhere, the Dow saw an upswing of 2.66%, while the tech-heavy Nasdaq appreciated by 2.71%.
The retail and wholesale bank's stock has climbed by 0.48% in the past month, exceeding the Finance sector's loss of 7.03% and the S&P 500's loss of 8.86%.
The investment community will be closely monitoring the performance of Toronto-Dominion Bank in its forthcoming earnings report. The company is predicted to post an EPS of $1.25, indicating a 16.67% decline compared to the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.38 per share and revenue of $42.17 billion, which would represent changes of -6.27% and +0.47%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Toronto-Dominion Bank. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% lower. Toronto-Dominion Bank presently features a Zacks Rank of #3 (Hold).
Investors should also note Toronto-Dominion Bank's current valuation metrics, including its Forward P/E ratio of 11.3. This valuation marks a premium compared to its industry's average Forward P/E of 9.33.
Investors should also note that TD has a PEG ratio of 1.54 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Banks - Foreign industry was having an average PEG ratio of 1.01.
The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 16, this industry ranks in the top 7% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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