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
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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) is widely recognized as the leading bank in Canada, benefiting from a favorable regulatory environment and robust investments in capital markets and wealth management. Many analysts have reiterated it as a 'Top Pick,' citing its strong earnings growth and consistent dividend payments. Despite its strong performance, concerns about valuation persist, particularly with the stock trading at high multiples compared to historical averages. Comments on future growth potential highlight the bank's ability to adapt in the current economic climate, although some experts advise exercising caution due to high valuation levels. Overall, RY is considered a stable, long-term investment with significant upside potential, supported by growing cash reserves and elevated return on equity targets.

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Consensus
Positive
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Valuation
Overvalued
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Similar
TD, TD
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.
BUY
The strength in this bank is the tremendous domestic franchise. Their capital markets position is pre-eminent. Didn’t get into major trouble on this last cycle. Well managed.
TOP PICK
This is a bank that has not had a significant problem with the US housing and credit crunch. Will have less revenue from their securities arm as there is less underwriting going on. Fundamentally it is a very strong bank. Strong dividend and growing. Price/earnings multiple is down by 25%. Good yield of over 3% for conservative investors.
HOLD
With their US exposure, it is possible there are some assets they will have to write down. All the same, this bank has had a history of showing very strong ROE's in the past. Their strategy has been more North American than some of the other banks. Very well run operation.
SELL
(Market Call Minute.) Can do better in other banks.
HOLD
Very good dividend. One of the best banks. He likes the banks and thinks most of the bad news is out of them.
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