Q: Please let me know your thoughts on the growth recovery in the USA, if any, on TD in 2025. I am considering selling TD for a tax loss and repurchasing it over a few months.
Thank you,
Thank you,
5i Research Answer:
TD's growth in the US is going to be capped under the penalties it received this year. It can certainly grow elsewhere, however. In F2025, analysts are forecasting a small dip in earnings per share, with about 6% to 8% growth expected in the following year. We think sentiment is near a bottom, and the stock should start to see some yield support soon. Any positive news at all might have an amplified impact, considering most investors are extremely frustrated with it. We think the next few years will be better for TD. That being said, we certainly doubt the price is going to 'spike' and we would be comfortable with a tax loss/re-buy strategy.