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.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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