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
(Market Call Minute.) Banks are cheap and the dividend growth story continues.
COMMENT
Surprised the market with their write down on monoline bond insurers. The bank is okay, but not one of her 2 favourites.
DON'T BUY
Very difficult environment for financials that will continue for some time. Canadian banks are higher quality with better capital ratios than US banks but with deteriorating credit and issues with structured products, he would avoid all financials. If he had to buy a bank, his preference would be Canadian Western (CWB-T).
COMMENT
Got out of all the Canadian banks last April. At this point, he would rather Trade them than Buy and Hold. His model price is $54.41, almost a 12% differential. Model price has been coming down. The next level would be $44.70, which is where he would buy for a Trade.
WATCH
Canadian bank stocks have 2 periods of seasonal strength. Next one starts at the end of January and goes through until the end of May. Toronto Dominion (TD-T) or Royal Bank (RY-T) would be his favourites. Consider buying closer to February. Also keep an eye on the sector.
BUY
Concerns over the credit market have hit the Canadian banks. Have been expanding in the US so the impact of the Cdn$ and how they report back to Canada will affect them. At current prices, all of the Canadian banks are looking fairly attractive. 4% yield. Very solid ROE, 25% lately but will probably be around 23% for the next couple of years.
HOLD
Has trended down over the last 9 months. Had a premium valuation going into 2007. Its performance has been fine, but the valuation has trended back to the mean. Has some US exposure through RBC Venturis.
BUY
Has a vibrant retail network. Exposure to the capital markets is not as high as the other banks. Didn't get caught too much with the subprime issue.
BUY
There is no particular rush to buy banks at this particular time. Problems in commercial paper, loans out of the US, etc., will continue to be out there. You can buy the banks now at a pretty attractive yield and markets have probably discounted a lot of the problems that might come forward. If you are looking out 2 or 3 years, you could buy at this time. 3.8% yield.
HOLD
Would hesitate to buy any bank for the next several months. Canadian domestic retail operation is fantastic. Have some relatively new US retail assets and have taken some write-downs and there will probably be more. Has a premium valuation, which should become more of an average valuation until we know how many US cockroaches there are.
BUY
Not long or short any banks right now. When you look at earnings yield (EP) on Canadian banks relative to interest rates or you look at the dividend yield relative to interest rates they are as cheap as they have been in 30 years. This is a clear barometer as to how cheap the market is right now. If he were a value investor, he would be backing up the trucks right now.
HOLD
Not any different than the rest of the banks. They are in a downtrend channel right now. The 200-day moving average has started to flatten out. Somewhere about $46, $47 could start to find support, but it will take time.
COMMENT
Great long-term positions at these prices. Banks report in the next couple of weeks, which will tell us even more if they have any hidden asset backed commercial paper. Could buy half a position now and the rest after the report. Yield is currently above a 10-year government bond.
WEAK BUY
Have reduced exposure in banks within financials. Boring. You get the dividend and tax credit. The Canadian economy should do much better than the U.S.
COMMENT
Largest and probably most conservative of the Canadian banks. He stepped out of most of the Canadian bank exposure because of worries about the asset-backed commercial paper. Might be getting to the point where you could get into the banks again.
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