Toronto-Dominion Bank Faces Mixed Performance Ahead of Earnings Release
In the latest trading session, Toronto-Dominion Bank (TD) closed at $56.93, marking a +0.48% move from the previous day. This performance exceeded the S&P 500’s daily gain of 0.1%. In contrast, the Dow posted a gain of 0.69%, while the tech-heavy Nasdaq rose by 0.06%.
Over the past month, shares of the bank have declined by 0.61%, underperforming the Finance sector’s gain of 5.55% and the S&P 500’s gain of 4.37%. Investors will be keeping a close watch on the upcoming earnings report, as the company’s earnings per share (EPS) are projected to be $1.35, unchanged from the same quarter last year.
Recent changes to analyst estimates for Toronto-Dominion Bank are also noteworthy. Such revisions often indicate shifting short-term business trends, with positive changes suggesting analyst confidence in the company’s outlook and profitability.
Research indicates that these estimate revisions can influence near-term stock movements. Investors can leverage this by utilizing the Zacks Rank, a model that considers these changes and simplifies ratings for stock performance.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a solid track record of outperforming expectations, as confirmed by external audits. Stocks rated #1 have delivered an average annual return of +25% since 1988. In the last 30 days, the consensus EPS projection for Toronto-Dominion Bank has slipped 1.07%. Currently, the bank holds a Zacks Rank of #4 (Sell).
Valuation is another critical factor for investors, and it’s worth noting that Toronto-Dominion Bank currently has a Forward P/E ratio of 9.46, which is higher than the industry’s average Forward P/E of 8.
Additionally, TD’s PEG ratio stands at 1.61. This ratio is similar to the P/E ratio, but it accounts for the anticipated growth rate of the stock’s earnings. In contrast, the average PEG ratio for the Banks – Foreign industry was 0.96 at yesterday’s market close.
The Banks – Foreign industry falls within the broader Finance sector and currently holds a Zacks Industry Rank of 93, placing it in the top 37% of over 250 industries evaluated. This ranking reflects the strength of various industry groups based on the average Zacks Rank of the individual stocks within them. Historical performance data shows that the highest-rated industries typically outperform the lower-ranked ones by a factor of two to one.
For investors keen on stock movements and metrics, further details can be found on Zacks.com.
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Read the full stock analysis report for Toronto-Dominion Bank (TD) here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
