Toronto-Dominion Bank (TD) closed the most recent trading day at $54.19, moving +0.02% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.54% for the day. Meanwhile, the Dow lost 1.63%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Shares of the retail and wholesale bank witnessed a gain of 1.35% over the previous month, beating the performance of the Finance sector with its loss of 3.4% and the S&P 500's loss of 2.2%.
Investors will be eagerly watching for the performance of Toronto-Dominion Bank in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.39, showcasing a 5.44% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $10.42 billion, reflecting a 3.47% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.57 per share and revenue of $42.51 billion, indicating changes of -2.96% and +1.28%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Toronto-Dominion Bank should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Toronto-Dominion Bank is currently a Zacks Rank #4 (Sell).
In the context of valuation, Toronto-Dominion Bank is at present trading with a Forward P/E ratio of 9.72. Its industry sports an average Forward P/E of 8.55, so one might conclude that Toronto-Dominion Bank is trading at a premium comparatively.
It is also worth noting that TD currently has a PEG ratio of 1.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Banks - Foreign industry held an average PEG ratio of 1.01.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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.
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