Toronto-Dominion Bank (TD) Beats Stock Market Upswing: What Investors Need to Know

Core Viewpoint - Toronto-Dominion Bank (TD) is experiencing a mixed performance in the stock market, with a recent increase in stock price but a projected decline in earnings for the upcoming report [1][2]. Group 1: Stock Performance - TD closed at $74.43, reflecting a +1.16% change from the previous day, outperforming the S&P 500's gain of 0.14% [1]. - Over the past month, TD's stock has risen by 3.81%, which is below the Finance sector's gain of 4.07% and the S&P 500's gain of 5.35% [1]. Group 2: Earnings Projections - The upcoming earnings report for TD is expected to show earnings of $1.41 per share, indicating a year-over-year decline of 6% [2]. - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.71 per share and revenue of $43.92 billion, reflecting changes of -0.52% and +4.65% respectively from the previous year [2]. Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for TD are important as they indicate shifts in near-term business trends, with upward revisions suggesting positive sentiment towards the company's operations [3]. - TD currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Consensus EPS estimate having increased by 0.32% in the past month [5]. Group 4: Valuation Metrics - TD is currently trading at a Forward P/E ratio of 12.88, which is a premium compared to the industry average Forward P/E of 9.94 [6]. - The company has a PEG ratio of 1.66, higher than the average PEG ratio of 1 for the Banks - Foreign industry [7]. Group 5: Industry Context - The Banks - Foreign industry, to which TD belongs, has a Zacks Industry Rank of 12, placing it in the top 5% of over 250 industries [7]. - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8].