Toronto Dominion Bank (The) (TD) Hits Fresh High: Is There Still Room to Run?

Shares of Toronto-Dominion Bank (TD) have been strong performers lately, with the stock up 4.4% over the past month. The stock hit a new 52-week high of $98.36 in the previous session. Toronto-Dominion has gained 4.3% since the start of the year compared to the 2.7% move for the Zacks Finance sector and the 9.4% return for the Zacks Banks - Foreign industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on December 4, 2025, Toronto-Dominion reported EPS of $1.57 versus consensus estimate of $1.46.For the current fiscal year, Toronto-Dominion is expected to post earnings of $6.52 per share on $46.51 in revenues. This represents a 9.03% change in EPS on a -7.56% change in revenues.Valuation MetricsWhile Toronto-Dominion has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Toronto-Dominion has a Value Score of C. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 15.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 12.1X. On a trailing cash flow basis, the stock currently trades at 13.5X versus its peer group's average of 11.7X. Additionally, the stock has a PEG ratio of 1.35. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Toronto-Dominion currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Toronto-Dominion passes the test. Thus, it seems as though Toronto-Dominion shares could still be poised for more gains ahead.How Does TD Stack Up to the Competition?Shares of TD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BNP Paribas SA (BNPQY). BNPQY has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. BNP Paribas SA beat our consensus estimate by 1.39%, and for the current fiscal year, BNPQY is expected to post earnings of $6.90 per share on revenue of $63.28 billion.Shares of BNP Paribas SA have gained 11% over the past month, and currently trade at a forward P/E of 8.17X and a P/CF of 6.21X.The Banks - Foreign industry is in the top 16% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TD and BNPQY, even beyond their own solid fundamental situation.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Toronto Dominion Bank (The) (TD): Free Stock Analysis Report BNP Paribas SA (BNPQY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks