Water-Logged And Getting Wetter: Toronto-Dominion Bank (TD)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Toronto-Dominion Bank ( TD) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Toronto-Dominion Bank as such a stock due to the following factors:

  • TD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $56.2 million.
  • TD has traded 1.5 million shares today.
  • TD traded in a range 224.9% of the normal price range with a price range of $1.17.
  • TD traded below its daily resistance level (quality: 42 days, meaning that the stock is crossing a resistance level set by the last 42 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in TD with the Ticky from Trade-Ideas. See the FREE profile for TD NOW at Trade-Ideas

More details on TD:

The Toronto-Dominion Bank, together with its subsidiaries, provides financial and banking services in North America and internationally. The stock currently has a dividend yield of 3.3%. TD has a PE ratio of 13.5. Currently there are 5 analysts that rate Toronto-Dominion Bank a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Toronto-Dominion Bank has been 1.2 million shares per day over the past 30 days. Toronto-Dominion has a market cap of $93.0 billion and is part of the financial sector and banking industry. Shares are up 5.7% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Toronto-Dominion Bank as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • TD's revenue growth has slightly outpaced the industry average of 4.6%. Since the same quarter one year prior, revenues slightly increased by 9.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • TORONTO DOMINION BANK has improved earnings per share by 40.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, TORONTO DOMINION BANK increased its bottom line by earning $3.45 versus $3.39 in the prior year.
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 38.9% when compared to the same quarter one year prior, rising from $1,497.00 million to $2,080.00 million.
  • Net operating cash flow has increased to $14,812.00 million or 29.11% when compared to the same quarter last year. In addition, TORONTO DOMINION BANK has also vastly surpassed the industry average cash flow growth rate of -63.98%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers