Toronto-Dominion Bank (TD) Exceeds Market Returns: Some Facts to Consider

Core Viewpoint - Toronto-Dominion Bank (TD) is showing positive stock performance and is expected to report strong earnings growth in the upcoming release, indicating a favorable outlook for the company. Group 1: Stock Performance - In the latest session, TD's stock increased by 1.58% to $98.21, outperforming the S&P 500 which gained 0.47% [1] - Over the past month, TD's stock has risen by 2.55%, leading the Finance sector's gain of 0.35% while the S&P 500 experienced a loss of 0.16% [1] Group 2: Earnings Estimates - TD is projected to report earnings of $1.57 per share on February 26, 2026, reflecting a year-over-year growth of 12.95% [2] - The consensus estimate anticipates revenue of $11.14 billion, indicating a 14.85% increase from the same quarter last year [2] - For the full year, analysts expect earnings of $6.42 per share and revenue of $46.51 billion, marking changes of +7.36% and -7.56% respectively from the previous year [3] Group 3: Analyst Estimates and Valuation - Recent changes in analyst estimates for TD reflect positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system currently rates TD at 3 (Hold), with the consensus EPS estimate remaining steady over the past month [6] - TD's Forward P/E ratio is 15.06, which is higher than the industry average of 11.77, suggesting that TD is trading at a premium [7] - The current PEG ratio for TD is 1.35, compared to the industry average of 1.01, indicating a higher expected earnings growth trajectory relative to peers [8] Group 4: Industry Context - The Banks - Foreign industry, to which TD belongs, has a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]