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Toronto-Dominion Bank (TD) Stock Sinks As Market Gains: Here's Why

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Toronto-Dominion Bank (TD - Free Report) closed at $55.48 in the latest trading session, marking a -1.42% move from the prior day. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.78%.

The retail and wholesale bank's shares have seen a decrease of 11.03% over the last month, not keeping up with the Finance sector's loss of 4.84% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Toronto-Dominion Bank in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.36, showcasing a 0.74% upward movement from the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.82 per share and a revenue of $40.85 billion, signifying shifts of -1.69% and +9.52%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Toronto-Dominion Bank. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.23% downward. At present, Toronto-Dominion Bank boasts a Zacks Rank of #3 (Hold).

Looking at valuation, Toronto-Dominion Bank is presently trading at a Forward P/E ratio of 9.66. This represents a premium compared to its industry's average Forward P/E of 8.1.

It is also worth noting that TD currently has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Banks - Foreign was holding an average PEG ratio of 0.97 at yesterday's closing price.

The Banks - Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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