Q: I do have a sizeable chunk of TD and am just wondering if y'all think a different bank is better suited for upside over the next 4 years or so....
5i Research Answer:
We have some comments posted on our recent thoughts for TD. Sentiment on the stock is very low, this can set up positive moves on any good news. We feel sentiment is near a bottom, and the stock should start to see some yield support soon. We think the next few years will be better for TD, but we are not highly confident on the stock price 'spiking' anytime soon. We have conducted studies in the past on the large Canadian banks and how historically, the worst performing bank of one year can sometimes become the best performing bank in the following year, and while this may not always play out, we could see TD improving in the coming years. With that said, for an alternative bank to TD, we would prefer BNS or RY today.