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
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.
COMMENT
Over the long term you will be a winner with either Toronto Dominion (TD-T) or Royal RY-T). Fantastic retail franchises, which will really determine the winners in the banking space. TD has been knocked back a bit so you get a better valuation with it.
HOLD
Stick with Canadian financial services sector over American. Stick with Royal bank over American banks.
SELL
Doesn't particularly like the banks so we would be more on the Sell side of things.
TOP PICK
(Note: - Royal employs him.) Very aggressive in making acquisitions outside Canada. 4th largest banker in the Caribbean. Increased its dividend 25% in the last year. Good value.
HOLD
A good long-term hold. Her other choices in banks would be Toronto Dominion (TD-T) and Scotia (BNS-T). At this price, she is taking some money off the table and putting it into non-bank financials.
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