Toronto-Dominion Bank (TD) closed the most recent trading day at $67.96, moving -1.38% from the previous trading session. This change was narrower than the S&P 500’s 2% loss on the day. At the same time, the Dow lost 2.06%, and the tech-heavy Nasdaq lost 2.32%.

Coming into today, shares of the retail and wholesale bank had gained 2.79% in the past month. In that same time, the Finance sector gained 2.23%, while the S&P 500 gained 2.88%.

Wall Street will be looking for positivity from Toronto-Dominion Bank as it approaches its next earnings report date. This is expected to be March 2, 2023. On that day, Toronto-Dominion Bank is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 0.61%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.66 per share and revenue of $37.58 billion. These totals would mark changes of +2.62% and -8.33%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Toronto-Dominion Bank currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Toronto-Dominion Bank has a Forward P/E ratio of 10.35 right now. This represents a premium compared to its industry’s average Forward P/E of 8.38.

It is also worth noting that TD currently has a PEG ratio of 1.39. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Banks – Foreign industry currently had an average PEG ratio of 0.9 as of yesterday’s close.

The Banks – Foreign industry is part of the Finance sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Toronto Dominion Bank (The) (TD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research


Source link