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Why Toronto-Dominion Bank (TD) Outpaced the Stock Market Today

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In the latest trading session, Toronto-Dominion Bank (TD - Free Report) closed at $56.93, marking a +0.48% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.1%. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 0.06%.

Shares of the retail and wholesale bank have depreciated by 0.61% over the course of the past month, underperforming the Finance sector's gain of 5.55% and the S&P 500's gain of 4.37%.

The investment community will be paying close attention to the earnings performance of Toronto-Dominion Bank in its upcoming release. The company's earnings per share (EPS) are projected to be $1.35, reflecting no change from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Toronto-Dominion Bank. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.07% lower. Right now, Toronto-Dominion Bank possesses a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Toronto-Dominion Bank has a Forward P/E ratio of 9.46 right now. This represents a premium compared to its industry's average Forward P/E of 8.

Investors should also note that TD has a PEG ratio of 1.61 right now. 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 average PEG ratio for the Banks - Foreign industry stood at 0.96 at the close of the market yesterday.

The Banks - Foreign industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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