Toronto Dominion Bank (The) (TD) Reached a 52-Week Peak, Will the Momentum Persist?

Toronto-Dominion Bank (TD) Stock Update

Toronto-Dominion Bank (TD) has recently attracted attention as its share price climbed 4.1% over the past month, reaching a new 52-week high of $99.29. Since the beginning of the year, TD's stock has advanced 4.9%, outperforming the Zacks Finance sector's 1.4% increase and the Zacks Banks - Foreign industry's 7.9% gain.

Reasons Behind TD's Strong Performance

TD has consistently surpassed earnings expectations, beating the Zacks Consensus Estimate for four consecutive quarters. In its most recent earnings release on February 26, 2026, the bank reported earnings per share (EPS) of $1.76, exceeding the anticipated $1.63.

Looking ahead, analysts project TD will achieve EPS of $6.71 on $48.33 billion in revenue for the current fiscal year, reflecting a 12.21% increase in earnings despite a 3.95% decline in revenue. For the following year, forecasts suggest EPS will rise to $7.41 with revenue reaching $50.44 billion, representing year-over-year growth of 10.38% and 4.38%, respectively.

Evaluating TD's Valuation

With TD's stock price at a yearly high, investors may wonder about its valuation. The Zacks Style Scores provide a comprehensive look at a company's value, growth, and momentum, rating each from A to F. These scores help investors match stocks to their preferred investment strategies.

• Value Score: C
• Growth Score: C
• Momentum Score: B
• Overall VGM Score: B

Currently, TD trades at 14.7 times its projected earnings for the fiscal year, higher than the industry average of 11.4 times. On a trailing cash flow basis, the stock is valued at 13.6 times, compared to the peer average of 11 times. Its PEG ratio stands at 1.32, which, while respectable, does not place it among the top value stocks covered by Zacks.

Zacks Rank and Investment Outlook

The Zacks Rank is a key indicator for investors, often outweighing style scores. TD currently holds a Zacks Rank of #1 (Strong Buy) due to positive revisions in earnings estimates. Zacks typically recommends stocks with a Rank of 1 or 2 and Style Scores of A or B, suggesting TD remains a compelling option for further growth.

Comparing TD to Industry Peers

While TD has performed well, it's worth considering other players in the sector. Svenska Handelsbanken Ab Publ (SVNLY) is another strong contender, holding a Zacks Rank of #2 (Buy), with a Value Score of C, Growth Score of B, and Momentum Score of B.

SVNLY exceeded earnings expectations last quarter by 71.43%. For the current year, the company is expected to post EPS of $0.63 on $6.24 billion in revenue. Over the past month, its shares have edged up 0.3%, and the stock currently trades at a forward P/E of 12.68 and a price-to-cash-flow ratio of 11.32.

The Banks - Foreign industry ranks in the top 9% of all industries tracked by Zacks, indicating favorable conditions for both TD and SVNLY beyond their individual strengths.

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