An analyst sees good growth prospects for The Toronto-Dominion Bank (TD)

The Toronto-Dominion Bank (NYSE: TD) stock fell -2.63% on Friday to $63.97 against a previous-day closing price of $65.70. With 1.74 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.86 million shares. During the session, the Banks – Diversified company that operates in wider Financial sector, reached to the highest price of $65.88 whereas the lowest price it dropped to was $63.97. The 52-week range on TD shows that it touched its highest point at $86.01 and its lowest point at $58.64 during that stretch. It currently has a 1-year price target of $83.21. With its current market cap of 117.49 billion, TD has annualized dividend of $2.75 while the current yield stands at 4.31%. Beta for the stock currently stands at 0.91.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TD was down-trending over the past week, with a drop of -3.86%, but this was down by -2.71% over a month. Three-month performance dropped to -4.65% while six-month performance fell -21.88%. The stock lost -0.19% in the past year, while it has lost -16.58% so far this year. A look at the trailing 12-month EPS for TD yields 5.96 with Next year EPS estimates of 8.97. For the next quarter, that number is 2.07. This implies an EPS growth rate of 20.10% for this year and 8.81% for next year. EPS is expected to grow by 8.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 10.50%.

Float and Shares Shorts:

At present, 1.80 billion TD shares are outstanding with a float of 1.79 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 45.33 million, which was 2.51% higher than short shares on Jun 14, 2022. In addition to Mr. Bharat B. Masrani as the firm’s Group Pres, CEO & Director, Mr. Kelvin Vi Luan Tran serves as its Sr. EVP & CFO.

Institutional Ownership:

Through their ownership of 57.08% of TD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.01% of TD, in contrast to 20.35% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in TD with 5.89% of the stake, RBC Global Asset Management, Inc. holds 106,206,881 shares worth 106,206,881. A second-largest stockholder of TD, 1832 Asset Management LP, holds 59,563,287 shares, controlling over 3.30% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in TD, holding 44,264,518 shares or 2.45% stake. With a 1.33% stake in TD, the Vanguard Total International Stoc is the largest stakeholder. A total of 23,922,025 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 1.21% of TD stock, is the second-largest Mutual Fund holder. It holds 21,736,176 shares valued at 1.4 billion. Capital Income Builder holds 0.81% of the stake in TD, owning 14,673,348 shares worth 944.08 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TD since 7 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TD analysts setting a high price target of $75.00 and a low target of $74.21, the average target price over the next 12 months is $74.61. Based on these targets, TD could surge 17.24% to reach the target high and rise by 16.01% to reach the target low. Reaching the average price target will result in a growth of 16.63% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TD will report FY 2022 earnings on 12/01/2022. Analysts have provided yearly estimates in a range of $6.44 being high and $6.18 being low. For TD, this leads to a yearly average estimate of $6.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Toronto-Dominion Bank surprised analysts by $0.03 when it reported $1.62 EPS against a consensus estimate of $1.59. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $1.66 and the low estimate is $1.50. The average estimate for the next quarter is thus $1.58.

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