Toronto Dominion Bank (The) (TD) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Toronto-Dominion Bank (TD)? Shares have been on the move with the stock up 4.1% over the past month. The stock hit a new 52-week high of $99.29 in the previous session. Toronto-Dominion has gained 4.9% since the start of the year compared to the 1.4% gain for the Zacks Finance sector and the 7.9% return for the Zacks Banks - Foreign industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 26, 2026, Toronto-Dominion reported EPS of $1.76 versus consensus estimate of $1.63.

For the current fiscal year, Toronto-Dominion is expected to post earnings of $6.71 per share on $48.33 in revenues. This represents a 12.21% change in EPS on a -3.95% change in revenues. For the next fiscal year, the company is expected to earn $7.41 per share on $50.44 in revenues. This represents a year-over-year change of 10.38% and 4.38%, respectively.

Valuation Metrics

Though Toronto-Dominion has recently hit a 52-week high, what is next for Toronto-Dominion? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Toronto-Dominion has a Value Score of C. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 14.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.4X. On a trailing cash flow basis, the stock currently trades at 13.6X versus its peer group's average of 11X. Additionally, the stock has a PEG ratio of 1.32. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Toronto-Dominion currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Toronto-Dominion passes the test. Thus, it seems as though Toronto-Dominion shares could still be poised for more gains ahead.

How Does TD Stack Up to the Competition?

Shares of TD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Svenska Handelsbanken Ab Publ (SVNLY). SVNLY has a Zacks Rank of #2 (Buy) and a Value Score of C, a Growth Score of B, and a Momentum Score of B.

Earnings were strong last quarter. Svenska Handelsbanken Ab Publ beat our consensus estimate by 71.43%, and for the current fiscal year, SVNLY is expected to post earnings of $0.63 per share on revenue of $6.24 billion.

Shares of Svenska Handelsbanken Ab Publ have gained 0.3% over the past month, and currently trade at a forward P/E of 12.68X and a P/CF of 11.32X.

The Banks - Foreign industry is in the top 9% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TD and SVNLY, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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