Canadian stock alert


CLOSING UPDATE: Toronto-Dominion Bank decreases gains by 0.2%, led Bank sector higher 18 October 2017 18:16 EDT


This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Toronto-Dominion Bank, Canada's 2nd largest bank by market capitalisation, has increased 0.3% to trade at CAD71.45 vs. the Bank sector which strengthened 264.8 points (or 13.2%) to 2,278.8. Representing a weighting of about 23.9% of the sector, the stock accounted for 0.6% of today's gain. Trading volume was 69% of average at the end of the day. Compared with the S&P/TSX 60 Index which fell 2.0 points (or 0.2%) in the day, this represented a relative price increase of 0.6%.

Technical indicators complementing today's significant uptrend:

+ The positive 1.07 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high thrice.

+ The price increased 0.5% in the last week and climbed 5.9% in the last month.

Other Bullish Signals include:

+ Tobin's Q Ratio is 0.1. Compared with the rest of the market the stock is undervalued and ranks in the top 1% of stock by value of Q Ratio.

+ Net profit margin has averaged 31.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents an impressive 9.2% of the estimated Enterprise Value of CAD140.6 billion (US$112.7 billion).


Bearish Signals:

As per the Du Pont analysis, Return on Equity of 11.9% is lower than sector average of 13.5%.


The 0.6% discount to 12-month high of CAD71.85 against the 22.6% premium to 12-month low of CAD58.28 suggests the climb might be peaking.

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


Dividend yield of 3.3% [4.0%]

Return on Equity 11.9% [13.5%]

Return on Assets 0.7% [0.8%]

Year-on-Year Earnings Growth of 10.9% [13.0%]


Afternoon Alert: Toronto-Dominion Bank increases 0.6%, leads Bank sector higher

18 October 2017 12:16 EDT

Toronto-Dominion Bank (The) (TSX:TD) has increased 0.6% to trade at CAD71.62 vs. the Bank sector which strengthened 268.4 points (or 13.3%) to 2,282.5. Representing a weighting of about 23.9% of the sector, the stock accounted for 1.0% of today's gain. The shares have outperformed 81% of the market in the past three months.

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

ISIN: CA8911605092

PermID: 4295862902

CIK: The Toronto