Toronto Dominion Bank (The) (TD) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Toronto-Dominion Bank (TD) has shown strong stock performance, reaching a 52-week high and outperforming both the Zacks Finance sector and the Zacks Banks - Foreign industry [1][2]. Performance Summary - TD's stock has increased by 4.4% over the past month and 4.3% since the beginning of the year, compared to 2.7% for the Zacks Finance sector and 9.4% for the Zacks Banks - Foreign industry [1]. - The last earnings report on December 4, 2025, showed an EPS of $1.57, exceeding the consensus estimate of $1.46 [2]. Earnings Expectations - For the current fiscal year, TD is projected to have earnings of $6.52 per share on revenues of $46.51 billion, indicating a 9.03% increase in EPS but a 7.56% decrease in revenues [2]. Valuation Metrics - TD's stock trades at 15.1 times the current fiscal year EPS estimates, which is above the peer industry average of 12.1 times [6]. - The trailing cash flow basis shows a valuation of 13.5 times compared to the peer group's average of 11.7 times, with a PEG ratio of 1.35 [6]. Zacks Rank - TD holds a Zacks Rank of 2 (Buy), supported by a positive earnings estimate revision trend, indicating potential for further gains [7]. Industry Comparison - The Banks - Foreign industry is performing well, ranking in the top 16% of all industries, suggesting favorable conditions for both TD and its peers [10]. - BNP Paribas SA, a competitor, also has a Zacks Rank of 2 (Buy) and shows strong earnings performance, indicating a competitive landscape [8][9].