Toronto Dominion Bank (TD:CA), one of Canada’s largest banks, operates a diverse range of financial services across Canada, the United States, and internationally. This analysis provides insights into TD’s recent stock performance, market conditions, and forecasts based on analyst sentiments.
Is now the time to buy TD? Access our full analysis report here, it’s free.
Recent Performance and Market Conditions:
As of the latest data, TD Bank’s stock closed at CAD 78.56. In the last week, it saw a minor decline of -0.21%, while showing a slight increase of +0.08% over the past month. Over the year, the stock has faced a decline of -6.31%, underperforming against sector averages. TD’s recent capital gain of -6.31% ranks it in the 5.26th percentile within its sector, indicating challenges in capital appreciation over the past year. However, it remains attractive to income investors due to its strong dividend return of 4.87%.
The current market conditions have presented volatility and economic challenges impacting TD’s performance. With a beta of 0.82, TD stock is less volatile than the broader market but still exhibits notable fluctuations. Rising interest rates and macroeconomic uncertainty have also pressured bank stocks, including TD, affecting both asset valuations and revenue growth.
Stock Target Advisor’s Analysis on TD Bank:
According to Stock Target Advisor, TD Bank holds a “Slightly Bearish” outlook. This assessment is based on four positive indicators, including its high market capitalization, high dividend yield, superior dividend growth, and a strong gross profit-to-asset ratio.
However, eight negative indicators present concerns, such as high stock volatility, below-median total returns, and poor performance in return on equity, capital utilization, and asset growth. TD’s high price-to-earnings ratio also indicates potential overvaluation in comparison to peers, while recent cash flow challenges add to the cautious outlook.
Discover the latest Analyst Ratings and forecasts for Toronto Dominion Bank on Stock Target Advisor!
Investor Sentiment and Analyst Ratings:
Investor sentiment around TD Bank remains somewhat mixed. Among the 15 analysts covering TD, the average 12-month price target is CAD 85.29, reflecting an expected upside of approximately 11.25%. Analysts’ ratings vary, with a general consensus leaning toward “Buy,” although some institutions rate it as “Sector Perform” or “Hold.”
Notable price targets from key firms include Morningstar’s CAD 88, Scotia Capital’s CAD 86, and Barclays’ CAD 80. This range highlights the varied opinions among analysts regarding TD’s potential growth.
Conclusion:
Toronto Dominion Bank is a major player in the banking sector with a stable dividend profile and strong market capitalization, making it appealing to income-oriented investors. However, recent stock performance and mixed analyst sentiment suggest caution, especially given the challenging macroeconomic landscape.
For investors, TD represents a potentially stable choice for income generation, albeit with moderate expectations for capital gains in the near term.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
