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
They have addressed their problems in the US and have turned it around. A reasonable story. Bank stocks are vulnerable to the interest-rate environment in the short-term. Great place to be for the long term. Very little competition.
HOLD
Banks are not cheap, by traditional measures. They are all trading above their historical price to earnings ratio levels. Substantially more expensive than the American/New York money central banks. As interest rates go up, he expects banks to lose their momentum.
HOLD
Canadian banks look a little expensive compared to US banks but, on the other hand, they are in a much stronger competitive position. Mutual-fund sales have been excellent.
BUY
Prefers Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T). This would be her third choice. It has made the turn on its US operations.
DON'T BUY
The outlook for financials has been quite good and continues to be good. Used to be the best run bank, but went through a period where it was tripping over itself. The quality of management has been picking up. Has had a big run and is probably overpriced.
BUY
Not expensive. Management has done a good job of building value in the last year or two. We'll be growing their franchises in the US.
HOLD
Had an excellent quarter. Has phenomenal ROE. The operations in Canada, particularly the retail banking, wealth management, capital markets business are all performing extremely well. Not crazy about banks at this time but a good holding.
BUY
The preferred bank in Canada. Always more expensive, but it's always better to pay more for a better company. Dividend keeps increasing. Well-managed. Prefers companies that have better growth profiles then banks.
DON'T BUY
Has recovered very well from a year ago. Still feels their are some longer term questions with their strategy. Have been having better news lately and their earnings have been coming in strong. Pretty well priced. Would consider taking profits if you own.
WEAK BUY
RBC Financial has lagged behind in 2005 because of the problems with their US division. They have addressed these problems and the turn around seems to be in place. It is reasonable value. RBC is her third favourite bank, prefers TD and Bank of Nova Scotia.
BUY ON WEAKNESS
Royal Bank has had good numbers. Recently split the stock. Raised the dividend 12%. Believes it would be better to wait for a pull-back, around the low 90's. In the long term top banks do relatively well. They are big and liquid.
TRADE
Very likely that a stock split will occur. It is a highly regarded bank, top of the pecking order. It could be an acquirer of other banks. Recently bought a little for a client.
WEAK BUY
Expect to see a stock split in the next earnings report or sometime soon. Retail banking is good and growing. Expect to see solid growth in the next 2 years. Evaluation is on the high end of range, less upside. Feels that TD Bank is more interesting.
BUY
Looking for a stock split and a dividend increase. Earnings are good. Worries a little bit about any Enron problems.
PAST TOP PICK
(A Top Pick Oct 31/05. Up 8%.) Still likes this bank. US holdings are getting cleaned up. Strong retail market in mortgages and mutual funds has been good.
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