| Stock (Symbol) | Stock Price | |
TD Bank (TD) |
$41 |
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| Data is as of | Expected to Report | Sector |
July 15, 2015 |
Aug 27 |
Financial |
| Sharek’s Take | ||
 Toronto Dominion Bank (TD), better known as TD Bank, is Canada’s 2nd largest bank and is located throughout southern Canada and the eastern US. This stock could grow profits just 11% per year plus pays a 3% yield for a total anticipated return of 14% long-term. The kicker is TD has dropped from $53 to $41 and is now incredibly undervalued with total upside (including dividends) of 49% to its 2016 Fair Value. The P/E has been 14 in 5-of-10 years and now 11. And higher interest rates on the horizon also brings better profit margins for banks. I feel this conservative stock provides exceptional return potential and will buy it for my Growth Portfolio. |
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| One-Year Chart | ||
 I don’t know exactly why this stock has fallen during the last year, but if I look into it too much I’ll talk myself out of buying. Yes, profit growth has been slow lately but that will bounce back. The 11 P/E is low compared to the Est. LTG of 11% plus 3% dividend (14% total annual growth?) |
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| Earnings Table | ||
 TD isn’t a rapid grower, sales increased just 4% last qtr as profits grew 5%.The company beat by a couple of cents last qtr.Annual Profit Estimates show profits are expected to climb 6% this year. Quarterly estimates don’t look hot. This isn’t a typical purchase for me but the upside as you will see below is what we are after. |
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| Fair Value | ||
 This stock has typically sold for 14 times earnings. In 5-of-10 years its had a P/E of 14. I think this is a dip we should take advantage of. |
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| Ten-Year Chart | ||
 Ten-year chart is good outside of the 2008-2009 financial crisis. Stock growth and profit growth not up to par, but I’ll likely sell if the stock rebounds much past $50. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
12 of 22 |
Toronto Dominion Bank is one conservative investors could buy-and-hold for perhaps 14% returns. I on the other hand see the stock as a short-term investment and if TD gets to its Fair Value I might take the profits. TD ranks just 12th of 22 stocks in the Growth Portfolio Power Rankings because the stock isn’t timely. Also the earnings growth isn’t enough for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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