In the latest close session, Toronto-Dominion Bank (TD) was up +1.58% at $98.21. The stock outperformed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.9%.
The stock of retail and wholesale bank has risen by 2.55% in the past month, leading the Finance sector's gain of 0.35% and the S&P 500's loss of 0.16%.
The investment community will be paying close attention to the earnings performance of Toronto-Dominion Bank in its upcoming release. The company is slated to reveal its earnings on February 26, 2026. On that day, Toronto-Dominion Bank is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 12.95%. Alongside, our most recent consensus estimate is anticipating revenue of $11.14 billion, indicating a 14.85% upward movement from the same 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.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Toronto-Dominion Bank boasts a Zacks Rank of #3 (Hold).
Investors should also note Toronto-Dominion Bank's current valuation metrics, including its Forward P/E ratio of 15.06. Its industry sports an average Forward P/E of 11.77, so one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.
Investors should also note that TD has a PEG ratio of 1.35 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Banks - Foreign industry had an average PEG ratio of 1.01 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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