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Toronto-Dominion Bank (TD) Dips More Than Broader Markets: What You Should Know

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Toronto-Dominion Bank (TD) closed at $61.56 in the latest trading session, marking a -0.84% move from the prior day. This change lagged the S&P 500's 0.45% loss on the day. At the same time, the Dow lost 0.67%, and the tech-heavy Nasdaq lost 0.06%.

Coming into today, shares of the retail and wholesale bank had lost 10% in the past month. In that same time, the Finance sector lost 3.17%, while the S&P 500 lost 1.89%.

Investors will be hoping for strength from Toronto-Dominion Bank as it approaches its next earnings release, which is expected to be August 25, 2022. The company is expected to report EPS of $1.60, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.65 billion, down 0.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $33.37 billion, which would represent changes of +1.91% and -1.71%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Toronto-Dominion Bank. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Toronto-Dominion Bank is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Toronto-Dominion Bank has a Forward P/E ratio of 9.68 right now. For comparison, its industry has an average Forward P/E of 7.83, which means Toronto-Dominion Bank is trading at a premium to the group.

Meanwhile, TD's PEG ratio is currently 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Banks - Foreign was holding an average PEG ratio of 0.77 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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