Canadian stock alert


Afternoon Alert: Toronto-Dominion Bank increases 1.2%, leads market higher 20 June 2018 14:43 EDT


Toronto-Dominion Bank (The) (TSX:TD) has increased 1.2% to trade at CAD76.89 vs. the S&P/TSX 60 Index which strengthened 7.7 points (or 0.8%) to 971.1. Representing a weighting of about 8.5% of the index, the stock accounted for 12.9% of today's gain. Trading volume was 66% of average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.61 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last one month the stock has hit a new 52-week high twice and in the last three months thrice.

Fundamental measures by comparison with the sector average [in brackets] indicate:


+ Year-on-Year Earnings Growth of 17.7% [12.4%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 38.9%.

+ Tobin's Q Ratio is 0.1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 33.2% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents an impressive 14.2% of the estimated Enterprise Value of CAD97.2 billion (US$73.2 billion).


Bearish Signals:

As per the Du Pont analysis, Return on Equity of 14.3% is lower than sector average of 15.0%.


The 0.04% discount to 12-month high of CAD76.92 against the 22.8% premium to 12-month low of CAD62.62 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:


Price/Earnings/Growth of 1.39 [0.2]

Price/Sales of 4.8 [0.8]

Dividend yield of 3.2% [4.1%]

Return on Assets 0.8% [0.9%]

Toronto-Dominion Bank (The) (T:TD; TSE:TD; N:TD; CN:TD)

ISIN: CA8911605092

PermID: 4295862902

CIK: The Toronto