TSE:RY

Royal Bank (RY.TO)

270.60
-0.34 (0.13%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
1475 watching
0
Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

Royal Bank (RY) has been reviewed positively by multiple financial experts, highlighting its stable performance and strong management. It has shown substantial growth, with a commendable increase in both profit margin and market position, benefiting from a robust capital markets business and the successful acquisition of HSBC Canada. However, some experts express caution, pointing out that RY is trading at high valuation metrics, with premium multiples that may lead to a restrictive growth outlook. A consensus emerges that while RY maintains its status as a leading Canadian bank with solid fundamentals, the valuation may limit near-term upside. Many analysts recommend holding the stock due to potential for steady dividends and modest growth in the longer term, suggesting RY is a core holding yet requiring vigilance concerning market fluctuations.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD,TD
BUY
Large position in his portfolio but his favourite is TD. Issues delivering earnings growth. Over next 3 years thinks they will eventually get out of the issues. It is third in his list. Their brand is improving.
BUY
Over the long term, this is a great company. Canadian banks have proven to be very resilient relative to global banks. Near-term, Cdn banks will be challenged by a flattening yield curve, making it harder for them to earn a high net interest margin. Good for the long-term.
BUY
Can look at this as a core quality holding. Good dividend. Solid business franchise. Exited the US. Growing global wealth management through some good acquisitions.
WAIT
A main pick. Likes because of stability of retail network. Can grow by acquisitions. A great margin business. He wants to see the growth strategy. TD has grown rates of return through the US. Wonders what their strategy is outside of Canada. Prefers TD.
BUY
Normal seasonal strength is from October until December and then another one in the spring. This bank tends to reach a very important low around this time of year. There are some early signs of support. Momentum indicators have just started to turn positive for this bank.
BUY
Has not done well in Canada, but has behaved very well compared to global banks. In a position where it can buy assets when they come out of Dexia. For a long-term investor, with their high yield, it gives you twice the level you get on a government bond along with the dividend tax credit.
BUY
His 2 favourite banks are this one and TD (TD-T). Looking at the consensus target price and the consensus target return, you've got 24%-25% growth over the year. Cheap. At the bottom of the Bollinger band line.
DON'T BUY
The banks have all had negative reports. Chart shows a double top in 2010-2011. Broke major support at around $50. A falling knife.
BUY ON WEAKNESS
Terrific name for the longer term. They are one of the more levered names to wholesale business. Net interest margins for banks continue to come down, which is a headwind. One wonders if their growth might start to slow if Canadian balance sheets start to get stretched and we get to the top of our real estate curve.
TOP PICK
(A Top Pick Sept 22/10. Down 15.08%.) You want to get banks, particularly those in Canada, when they are mis-priced relative to the rest of the group. This bank has had its share of problems recently. Sold off their US retail operations. For years and years, it has commanded a premium multiple. Good reward in 5 years.
WAIT
One of the first times in his career when he was not an owner of Canadian banks. Canadian housing market is poised to soften at some point. He sees some downside in the banks. Dividends are secure but he thinks they have more to fall. If another 10% dip he would be buying. Fantastic franchise.
TOP PICK
3.18% due Nov 2/15. Financials under performing. (Subordinated, not the seniors.) Cdn banks have very strong footing. They have the option to roll over for another 5 years.
COMMENT
Toronto Dominion (TD-T) or Royal (RY-T) for a long-term hold? Royal just sold their US retail operations while TD continues to expand and is attracting a lot of deposits. Would prefer TD because of less trading activity but a very hard question as they are both very close.
TOP PICK
(A Top Pick Sept 27/10. Down 9.37%.)Has been a laggard among Canadian banks, primarily because of the volatility in their trading revenue. Their domestic franchise is very strong and posted pretty good earnings. Wealth management, long-term, is the right direction as demographics favour this. Yield of about 4.7%.
BUY
Flip-flopped each quarter with one quarter having good earnings in the next having poor earnings. This has to do with trading. Capital Market is an impossible business to analyze. Earnings will increase going forward since they sold off their US assets. (See Top Picks.)
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