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
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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
DON'T BUY
Banks did a really good job this quarter relative to expectations. This would be one of the stellar ones. The issue he has with the banks right now is lack of earnings growth. Thinks we are through the worst of the asset backed write-offs. Now we are into the pure credit cycle and there is a little bit more deterioration on the credit side.
COMMENT
With a 5-year time horizon, you are fine with any of the banks. This one has moer issues with the US with its bigger exposure. Caught in the same issues as all global financials. Credit crunch is impacting balance sheets. Probably more write-downs to come. Earnings growth is going to be pretty tough.
DON'T BUY
Would prefer Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T). Owns this but is underweight. Worried that they could surprise on the downside in the quarter.
DON'T BUY
About 25% of its earnings come from the US now. Banks with US exposure are not valued as well as those without. There is still a black hole in the US as to how much bad paper is still out there. A great bank, but its US exposure will continue to hurt them.
DON'T BUY
(Preferred Shares) Not have fan of preferred shares. Most of them are perpetual is meaning that once you buy them you are stuck with them. He sees higher interest rate potential down the road.
COMMENT
Well run bank. If the US financials turnaround, the Canadian banks will start to recover.
DON'T BUY
On Canadian banks this is the biggest and probably the strongest but unfortunately it has built up a big presence in the US, which has built up their risk factor.
COMMENT
Q: Sell this one for a tax loss and going into Bank of Nova Scotia (BNS-T)? A: From a tax point of view, he would have no disagreement with this. In 5, 10, 15 years both banks are going to look like great investments. On the other hand, you could add BNS to your existing portfolio.
WAIT
Would wait for lower prices. Could see the stock easily trading down at around $38 but the target he would really like to see is $31 and he thinks it will get there.
HOLD
Have some issues they have to deal with. Expansion in the US and limited growth in Canada. Valuation is getting somewhat more attractive. Wouldn't rush out and buy the banks yet.
HOLD
Vulnerable, but not as much as some of the others. Medium to longer term, have a great franchise and the US expansion will be positive. Possible US recession and credit contraction will be tough on the banks. Prefers Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T).
COMMENT
If you’re looking at 10 years you’ll do well here. If you are looking out at the next year and a half, he does not see a V shaped recovery in the financial sector or in the US economy.
BUY
His 2nd favourite bank. (Toronto Dominion (TD-T) is #1.) They didn't participate in a lot of the blow-up in the US. About 1.5X book value, which is historically cheap. Yield of 4.07%. Canadian banks now have the power of currency behind acquisition.
DON'T BUY
Reports this week and is looking at about 8% or 10% pullback below last year's 2nd quarter. This is the one that he worries little bit about because they've got pretty good US consumer exposure.
PAST TOP PICK
(A Top Pick July 31/07. Down 5%.) Still buying.
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