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The most recent trading session ended with Toronto-Dominion Bank (TD) standing at $57.07, reflecting a -0.52% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 0.28%.
The retail and wholesale bank's shares have seen an increase of 8% over the last month, surpassing the Finance sector's gain of 5.73% and the S&P 500's gain of 2.87%.
Investors will be eagerly watching for the performance of Toronto-Dominion Bank in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.38, marking a 6.12% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.42 billion, up 3.47% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.54 per share and revenue of $42.51 billion, indicating changes of -3.48% and +1.28%, respectively, compared to the previous year.
It is also important to note the recent changes 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.51% decrease. Right now, Toronto-Dominion Bank possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Toronto-Dominion Bank is currently exchanging hands at a Forward P/E ratio of 10.35. This represents a premium compared to its industry's average Forward P/E of 9.04.
We can also see that TD currently has a PEG ratio of 1.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Banks - Foreign industry held an average PEG ratio of 0.99.
The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.