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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 the latest trading day at $55.84, indicating a -0.57% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.3%. At the same time, the Dow added 0.99%, and the tech-heavy Nasdaq gained 0.27%.

Prior to today's trading, shares of the retail and wholesale bank had lost 0.32% over the past month. This has lagged the Finance sector's gain of 4.87% and the S&P 500's gain of 2.1% in that time.

Investors will be eagerly watching for the performance of Toronto-Dominion Bank in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on December 5, 2024. The company is predicted to post an EPS of $1.18, indicating a 12.59% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.26 billion, up 6.18% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Toronto-Dominion Bank. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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 1.61% lower. Toronto-Dominion Bank presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Toronto-Dominion Bank is currently trading at a Forward P/E ratio of 10.01. This represents a premium compared to its industry's average Forward P/E of 7.87.

We can also see that TD currently has a PEG ratio of 1.94. 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 0.94 as of yesterday's close.

The Banks - Foreign industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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