In the latest trading session, Toronto-Dominion Bank (TD) closed at $64.52, marking a -0.69% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today's trading, shares of the retail and wholesale bank had lost 1.89% over the past month. This has lagged the Finance sector's gain of 6.21% and the S&P 500's gain of 8.35% in that time.
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. In that report, analysts expect Toronto-Dominion Bank to post earnings of $1.59 per share. This would mark a year-over-year decline of 0.63%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.40 per share and revenue of $33.12 billion. These totals would mark changes of +1.75% and -2.44%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Toronto-Dominion Bank is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Toronto-Dominion Bank is holding a Forward P/E ratio of 10.15. For comparison, its industry has an average Forward P/E of 8.21, which means Toronto-Dominion Bank is trading at a premium to the group.
It is also worth noting that TD currently has a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TD's industry had an average PEG ratio of 0.8 as of yesterday's close.
The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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