Stock (Symbol) |
TD Bank (TD) |
Stock Price |
$60 |
Sector |
| Financial |
Data is as of |
| January 23, 2018 |
Expected to Report |
| Feb 25 |
Company Description |
 TD operates as a bank in North America. TD conducts its business through segments, such as Canadian Retail, U.S. Retail, Wholesale Banking and Corporate. Canadian Retail provides a range of financial products and services to customers in the Canadian personal and commercial banking businesses. U.S. Retail consists of the Bank’s retail and commercial banking operations operating under the brand TD Bank, America’s Most Convenient Bank, and wealth management services in the United States. TD is also an online financial services firm. Source: Thomson Financial |
Sharek’s Take |
 Toronto-Dominion, better known as TD Bank (TD), is growing strong and still undervalued at 13x earnings. TD is Canada’s 2nd largest bank with a concentration in Southern Canada and the eastern US. The company just closed on its acquisition of Scottrade, which will boost the brokerage business, especially in the U.S. TD is already growing at a double-digit rate in America, and this move should boost results further as it joins two of the top online brokerages. With economies doing better, interest rates are on the rise, and banks are profiting. I consider TD to be a 7% grower and it had profit growth of 20% last year. That’s great! Profits are expected to grow in the double digits in three of the next four qtrs as well. Overall, this is a good income stock for conservative investors as the yield is north of 3%. The Estimated Long-Term Growth Rate is 9% per year, which if that were to occur would be a total return of 12% a year. Not bad for a safe stock. TD is a holding in the Conservative Growth Portfolio and I think the stock has what it takes to continue on this upward trend. |
One Year Chart |
 Profits grew 17% last qtr, which met analyst estimates. Revenues rose 6%. After the company reported, 2018 profit estimates increased from $4.65 to $4.76. Qtrly Estimates call for 16%, 11%, 3% and 12% profit growth the next 4 qtrs. That’s great for what I consider to be a 7% grower. Analysts are more bullish than I with rates on the rise, as they have an Est. LTG of 9% on the stock. Excellent P/E of 13. |
Fair Value |
 Look at how many times this company has had a median annual P/E of 14. And now with proftis growing stronger than they have been, I feel the P/E can get to 15 or 16. There’s solid upside with this stock, I’m very impressed with the numbers. |
Bottom Line |
 TD Bank like many banks has had a tough decade. But now everything seems to be going in its favor. TD had a tough time in 2015-2016 as low oil prices made it tough on economic growth. Now bank stocks are strong as interest rates are on the rise. And the addition of Scottrade could boost profits past expectations. TD ranks 17th of 32 stocks in the Conservative Growth Power Rankings. Disclosure: Scottrade is a brokerage firm used by Shareks, LLC to hold client assets and execute trades. |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 16 of 32 |
