While other Canadian bank shares have started to bounce back from a rough end to 2018, Toronto-Dominion Bank (TSX: TD) (NYSE: TD) only managed to post a rally that was slightly embarrassed by the 5% mark. Although a weak relief rally relative to peers is not surprising to some, because TD Bank stocks have not fallen as hard from peak to trough, I feel it is unfair that TD Bank shares remain in dog houses despite the solid quarter that places most other Canadian banks feel embarrassed. With that in mind, I think TD Bank shares will take over …
While other Canadian bank shares have started to bounce back from a rough end to 2018, Toronto-Dominion Bank (TSX: TD) (NYSE: TD) only managed to post a rally that was slightly embarrassed at the 5% mark. Although a weak relief rally relative to peers is not surprising to some, because TD Bank stocks have not fallen as hard from peak to trough, I feel it is unfair that TD Bank shares remain in dog houses despite the solid quarter that places most other Canadian banks feel embarrassed.
With that in mind, I think TD Bank shares will take over their counterparts coming in the next few quarters, as investors return their focus to the performance of each of the companies themselves and are not afraid of the dire macro environment.
Some bulls, such as fellow contributors to Ambrose O & Callaghan Fool, did not rule out the possibility that TD Bank shares could break an all-time high of around $ 80.
"Investors may want to dampen their expectations in 2019, because economic barriers will destabilize the market going forward. "A shot back to all-time highs is a difficult thing, but TD Bank is in a good place to lead a recovery in Canadian finance this year," said O & # 39; Callaghan in the previous section dated January 13.
From current levels, TD Bank shares must rally 16.2% for this year, implying a total return of around 20%. That is a high order but it is clearly not out of the question, especially when you consider TD Bank shares not only the main players in Big Six with a more unstable income stream, higher growth, but also one of the best performers. for the past year. Add a technology-driven catalyst to the equation, and there's no question that 2019 could be a year of rebound for TD Bank.
Most people on Street already know TD Bank loan books are more conservative, and their quality is higher, despite the U.S. ROE business. which is lower, but what many analysts ignore is the bank's potential for technological innovation in the FinTech arena.
You know, TD Bank has opened its wallet about technology initiatives, many of which have not enjoyed a return on investment. This will change, however, when TD launches a significant increase on the WebBroker platform, which will be full of innovative new features that aim to improve its customer experience.
It's not just about an enhanced platform, TD has recently released an AI-based chatbot called Clari. Of course, Clari is not perfect, because this is a new technology that faces customers, but over the years, after many updates, don't be surprised if you find Clari as the cause of the decline in the number of tellers in the physical branch. Who knows? Clari may be the only teller who can interact with TD customers in 10 years from now.
Stupid takeaway on TD Bank shares
TD Bank does not deserve to be beaten as badly as before. The bank has arguably made the biggest progress in 2018, so don't think for a moment that the stock chart illustrates what happened.
Over the next few months, I think not only will the price of the $ 80 Oallallhan point be reached by the end of the year, it will likely be damaged in the summer if the yield curve does not end up reversing on us. However, TD Bank is a purchase of confidence at a price of $ 68 and changes.
Stay hungry. Stay stupid.
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Stupid contributor, Joey Frenette, owns TORONTO-DOMINION BANK shares.