| Stock (Symbol) | Stock Price | |
TD Bank (TD) |
$39 |
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| Data is as of | Expected to Report | Sector |
September 14, 2015 |
Dec 3 |
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. I purchased the stock earlier this year because this safe stock had perennially sold for 14x earnings and I was able to pick it up for 11x. I feel its only a matter of time until bank stocks go up in anticipation of higher interest rates (may be a bit of a wait as Canada’s economy isn’t growing). The good news is TD didn’t crack under pressure during the recent stock market correction, and has even gone up from $39 to $41 since these charts were done a month ago. It now it looks like growth stocks have gone out of favor in the stock market and value stocks are back in style. My 2016 Fair Value on the stock is $54, which is a solid 32% above today’s (Oct 12) price. Investors also earn a dividend of around 3.5% while they wait. |
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| One-Year Chart | ||
 This chart looks terrible — that is unless you got in around $40. Then you might see the stock bottoming here and making its way back towards $50. The Est. LTG is just 7% and if you add in the dividend this looks to be a double-digit grower for 11x earnings. |
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| Earnings Table | ||
 TD grew sales 7% last qtr which was good. Sales growth could be flat this year, maybe up 6% next year. Profit growth was just 3% last qtr.The company beat the street but it was just by a penny. Annual Profit Estimates came down a bit since last qtr.Quarterly estimates show 5% profit growth on the horizon. |
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| Fair Value | ||
 In five of the last ten years TD has had a P/E of 14. This has the opportunity to be a good investment if value stocks come back into favor. |
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| Ten-Year Chart | ||
 This to me looks like a slow climb higher if you ignore the 2008 financial crisis and the recent pullback. I can imagine this stock going back to $50 soon. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 27 |
Toronto Dominion Bank is a stock that analysts expect will grow profits 7% a year long-term and if you tack on a 3.5% yield you might have a double-digit grower with lots of safety — one that you bought at 11x earnings. Value stocks are back in style and that could mean TD going higher. The upside here is very good, as is the safety. TD ranks just 21st of 27 stocks in the Growth Portfolio Power Rankings because this is stock to sit on. It’s not in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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