All You Need to Know About Toronto-Dominion (TD) Rating Upgrade to Buy

Core Viewpoint - Toronto-Dominion Bank (TD) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Stock Performance - The Zacks rating system focuses on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts for the current and following years [2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [5][7]. Recent Developments for Toronto-Dominion - For the fiscal year ending October 2025, Toronto-Dominion is expected to earn $5.64 per share, reflecting a -1.7% change from the previous year, but the Zacks Consensus Estimate has increased by 4% over the past three months [9]. - The upgrade to Zacks Rank 2 places Toronto-Dominion in the top 20% of Zacks-covered stocks, suggesting potential for higher stock movement in the near term [11]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8][10]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10].