TSE:RY

Royal Bank (RY.TO)

295.01
+1.34 (0.46%)
as of Jul 24, 2026, 8:00:00 pm Market Open.
1479 watching
0
Investor Insights
star iconJul 26, 2026, 12:00 am

This summary was created by AI, based on 57 opinions in the last 12 months.

Royal Bank (RY-T) is widely viewed as a strong performer in the Canadian banking sector, with reviews highlighting its premium positioning and strong capital markets performance. Experts cite robust earnings growth driven by investments in technology, particularly in capital markets and wealth management, as key factors contributing to its resilience. While the valuation of RY is noted to be at a premium compared to historical averages, many analysts believe this premium is justified due to the bank's consistent performance, effective management, and growth potential, particularly following the acquisition of HSBC Canada. Despite some concerns about market valuations being high and potential economic headwinds, RY maintains a favorable outlook, with many recommending it as a core holding for long-term investors. Dividend growth is also a recurring theme, showcasing the bank's commitment to return capital to shareholders while supporting growth initiatives.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD
DON'T BUY
(Market Call Minute.) This would not be his first choice. There are a couple of others that would have a better valuation.
TOP PICK
Dividend yield of 4% plus. A year from now, the economy is going to be better and we won't be talking about housing prices and loan losses. Earnings are going to start growing. This bank’s wholesale business doesn't get enough credit. Very good upside in the next couple of years.
DON'T BUY
A number of things that have driven earnings gains in the past are probably not there going forward. Banks became very over owned and never will likely be a multiple contraction going forward. He has very limited holdings in financials.
HOLD
His 2 picks in Canadian banks would be Bank of Nova Scotia (BNS-T) and Royal Bank (RY-T). The issue he has with them is that the charts show them right up against the long-term trend. Things are not getting a lot better out there and he doesn't know how they are going to make a lot of money. Will probably be a sideways trade for some time. 4.3% yield.
SELL
Would consider taking profits as the banks have gone up on declining volume. Charts of Canadian banks shows volumes were highest at the bottom of the stocks. As the stocks have been going up, the volumes have been going down. Also big US exposure and commercial loan exposure is there. Credit card debt could be a problem.
BUY ON WEAKNESS
With the latest run he sold part of his holdings. Best in class company but would wait for a 10% drop.
BUY
(Market Call Minute.) One of his 3 favourite banks. The other 2 are Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T).
HOLD
Long-term this one is definitely a hold. Has been very well managed and diversified. Will be a winner in the long-term.
BUY ON WEAKNESS
(Market Call Minute.) Thinks the banks are going to trade in a trading range so would wait for a pullback closer to $40.
BUY ON WEAKNESS
Expects it will pull back with the market.
COMMENT
He bought about a month ago and has been selling over the last 2 weeks. Financials had a pretty good run off the bottom. 2nd quarter earnings are coming up in the next couple of weeks and he wants to stand back and let the normal seasonal effects take hold.
BUY
(Market Call Minute.) Has pulled back and little bit and has some good upside. Good dividend.
TOP PICK
He values this company at $50 a year from now.
SELL
(Market Call Minute.) Banks have been running up on decreasing volumes. Also, they have a very large US exposure.
TOP PICK
Callable Bond due in 2018 which should be called out in 2013. If it doesn't get called out, it will float. Great hedge against inflation. Yields close to 4%.
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