Last Updated: 16 Sep 2024
Executive Summary
Toronto Dominion Bank (TD) is a leading financial institution in North America, offering a comprehensive range of personal and commercial banking products and services. The company's strong market position, diversified revenue streams, and solid financial performance make it an attractive investment option.
Company Overview
TD is headquartered in Toronto, Canada, and has a significant presence in the United States. The bank provides a wide range of financial services, including retail banking, commercial banking, wealth management, and investment banking. TD has a strong balance sheet and a long history of delivering consistent earnings growth.
Fundamental Analysis
Revenue: TD's revenue has grown steadily in recent years, reaching $52.3 billion in the past 12 months. The bank's diversified revenue streams provide stability and resilience.
Earnings: TD's diluted EPS has remained stable at around $3.18 in the past year. The company's strong cost management and efficient operations have contributed to its consistent earnings performance.
Profitability: TD's profit margin is 15.7%, indicating a healthy level of profitability. The bank's operating margin and return on assets are also strong.
Valuation: TD's trailing PE ratio of 19.56 is slightly above the industry average. However, the company's forward PE ratio of 10.29 suggests that it may be undervalued.
Technical Analysis
52-Week Range: TD's stock price has traded between $52.65 and $62.69 in the past year.
Moving Averages: The stock's 50-day moving average is $58.39, and its 200-day moving average is $58.81. These moving averages indicate that the stock is currently in a neutral trend.
Support and Resistance: The stock has strong support at $58 and resistance at $62.50.
Short Term Outlook
In the short term, TD's stock price is expected to trade within the $58-$62.50 range. The stock may face some resistance at its 200-day moving average, but it is likely to find support at its 50-day moving average.
Long Term Outlook
TD's long-term outlook is positive. The company's strong fundamentals, diversified revenue streams, and solid financial performance position it well for continued growth. The bank's focus on digital banking and its expansion into new markets are expected to drive future earnings growth.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on TD stock. Nine analysts recommend buying the stock, three recommend holding it, and two recommend selling it. The average analyst target price is $64.75, which represents a potential upside of 4.1% from the current price.
