Toronto-Dominion Bank (TD – Free Report) closed the most recent trading day at $68.67, moving +0.81% from the previous trading session. This change outpaced the S&P 500’s 0.25% gain on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Prior to today’s trading, shares of the retail and wholesale bank had gained 4.18% over the past month. This has lagged the Finance sector’s gain of 7.22% and the S&P 500’s gain of 5.73% in that time.
Toronto-Dominion Bank will be looking to display strength as it nears its next earnings release. In that report, analysts expect Toronto-Dominion Bank to post earnings of $1.63 per share. This would mark a year-over-year decline of 0.61%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.65 per share and revenue of $37.58 billion, which would represent changes of +2.47% and -8.33%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 remained stagnant. Toronto-Dominion Bank is currently a Zacks Rank #3 (Hold).
Digging into valuation, Toronto-Dominion Bank currently has a Forward P/E ratio of 10.25. This represents a premium compared to its industry’s average Forward P/E of 8.4.
Investors should also note that TD has a PEG ratio of 1.31 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Banks – Foreign stocks are, on average, holding a PEG ratio of 0.92 based on yesterday’s closing prices.
The Banks – Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.