Toronto Story

TD -- USA Stock

USD 57.80 1.16 1.97%

Macroaxis Story

Toronto Dominion Bank is scheduled to announce its earnings today. While many of us are getting excited about financial services space, we are going to digest the feasibility of purchasing Toronto. We will analyze why Toronto Dominion investors may still consider a stake in the business given the latest economic outlook.

Published over a month ago

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What is January outlook for Toronto Dominion (NYSE:TD)?

On a scale of 0 to 100, Toronto Dominion holds a performance score of 9. The entity has a beta of 0.8221, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Toronto's beta means in this case. As returns on the market increase, Toronto Dominion returns are expected to increase less than the market. However, during the bear market, the loss on holding Toronto Dominion will be expected to be smaller as well. Although it is extremely important to respect Toronto Dominion Bank current price movements, it is better to be realistic regarding the information on equity historical returns. The philosophy towards measuring future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting Toronto Dominion Bank technical indicators, you can presently evaluate if the expected return of 0.2% will be sustainable into the future. Please operates Toronto Dominion information ratio, potential upside, as well as the relationship between the Potential Upside and kurtosis to make a quick decision on whether Toronto Dominion Bank existing price patterns will revert.

What is the right price you would pay to acquire a share of Toronto Dominion? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Toronto Dominion Bank this year

Annual and quarterly reports issued by Toronto Dominion Bank are formal financial statements that are published yearly and quarterly and sent to Toronto stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Toronto Dominion often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Toronto utilizes its cash?

To perform a cash flow analysis of Toronto Dominion, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Toronto Dominion is receiving and how much cash it distributes out in a given period. The Toronto Dominion cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Toronto a risky opportunity?

Let's check the volatility. Toronto is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Toronto (NYSE:TD) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Toronto Dominion stock makes you a part-owner of that company.

Toronto Dominion Bank Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Toronto Dominion Bank. The Toronto consensus assessment is calculated by taking the average estimates from all of the analysts covering Toronto Dominion

Strong Buy

Hold

Strong Buy	2	40.0
Buy	0	0.0
Hold	3	60.0
Sell	0	0.0
Strong Sell	0	0.0

Some Toronto technical indicators suggest relapse

Latest downside deviation is at 1.37. Toronto Dominion Bank has relatively low volatility with skewness of 0.81 and kurtosis of 2.64. However, we advise all investors to independently investigate Toronto Dominion Bank to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Toronto Dominion Investment

Although many of the other players under the banks?diversified industry are still a bit expensive, Toronto Dominion may offer a potential longer-term growth to shareholders. To conclude, as of the 3rd of December 2020, our research shows that Toronto Dominion is a rather very steady investment opportunity with a below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our primary 30 days buy vs. sell advice on the firm is Strong Buy.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Toronto Dominion Bank. Please refer to our Terms of Use for any information regarding our disclosure principles.

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