Is The Toronto Dominion Bank (TD) Outperforming Other Finance Stocks This Year?

For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Toronto-Dominion Bank (TD) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Toronto-Dominion Bank is one of 873 companies in the Finance group. The Finance group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Toronto-Dominion Bank is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for TD's full-year earnings has moved 1.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, TD has moved about 29.1% on a year-to-date basis. Meanwhile, stocks in the Finance group have gained about 8.6% on average. As we can see, Toronto-Dominion Bank is performing better than its sector in the calendar year.

Another Finance stock, which has outperformed the sector so far this year, is California BanCorp (BCAL). The stock has returned 17.3% year-to-date.

For California BanCorp, the consensus EPS estimate for the current year has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Toronto-Dominion Bank belongs to the Banks - Foreign industry, a group that includes 85 individual stocks and currently sits at #68 in the Zacks Industry Rank. Stocks in this group have gained about 21.6% so far this year, so TD is performing better this group in terms of year-to-date returns.

California BanCorp, however, belongs to the Banks - Southwest industry. Currently, this 20-stock industry is ranked #95. The industry has moved +10% so far this year.

Going forward, investors interested in Finance stocks should continue to pay close attention to Toronto-Dominion Bank and California BanCorp as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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