Toronto-Dominion Bank (TD) closed at $74.38 in the latest trading session, marking a +1% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.52%. Elsewhere, the Dow saw an upswing of 1.89%, while the tech-heavy Nasdaq appreciated by 1.88%.
Shares of the retail and wholesale bank have depreciated by 1.63% over the course of the past month, underperforming the Finance sector's gain of 1.71%, and the S&P 500's gain of 1.1%.
The investment community will be paying close attention to the earnings performance of Toronto-Dominion Bank in its upcoming release. The company is slated to reveal its earnings on August 28, 2025. The company is forecasted to report an EPS of $1.46, showcasing a 2.67% downward movement from the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $5.77 per share and a revenue of $43.92 billion, demonstrating changes of +0.52% and +4.65%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Toronto-Dominion Bank. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.99% rise in the Zacks Consensus EPS estimate. Toronto-Dominion Bank is currently a Zacks Rank #3 (Hold).
In terms of valuation, Toronto-Dominion Bank is currently trading at a Forward P/E ratio of 12.76. This denotes a premium relative to the industry average Forward P/E of 10.63.
It is also worth noting that TD currently has a PEG ratio of 1.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Banks – Foreign industry was having an average PEG ratio of 1.03.
The Banks – Foreign industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
