The most recent trading session ended with Toronto-Dominion Bank (TD) standing at $63.78, reflecting a +0.81% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.15% for the day. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.09%.
Coming into today, shares of the retail and wholesale bank had gained 6.62% in the past month. In that same time, the Finance sector lost 0.33%, while the S&P 500 lost 0.21%.
Market participants will be closely following the financial results of Toronto-Dominion Bank in its upcoming release. On that day, Toronto-Dominion Bank is projected to report earnings of $1.25 per share, which would represent a year-over-year decline of 16.67%.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.38 per share and a revenue of $42.17 billion, indicating changes of -6.27% and +0.47%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Toronto-Dominion Bank. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.22% lower. Toronto-Dominion Bank is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Toronto-Dominion Bank currently has a Forward P/E ratio of 11.75. Its industry sports an average Forward P/E of 9.77, so one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.
We can also see that TD currently has a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Banks - Foreign industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Banks - Foreign industry is part of the Finance sector. With its current Zacks Industry Rank of 14, this industry ranks in the top 6% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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