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
0
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
They have put aside $25 million for the settlement related to Enron.
DON'T BUY
Now starting to deal with their unprofitable US assets, so the outlook on the stock has improved. Pretty fairly valued here.
HOLD
Going to continue to rise. Has a dominant position. A solid stock.
BUY
Has gone from being the laggard in the bank area to probably one of the strongest performers. Have taken action in the US to get out of businesses they should'nt have been in.
TOP PICK
Profitability for all major Canadian banks is staggering. It is averaging around 19%. Good growth.
BUY
The news is getting better for Royal Bank. Have had 2 successful quarters where they've beaten the expectations. The US purchases is under better control now. Good wealth management operation.
DON'T BUY
Stock price will be enhanced it they do something with their US holding Centura, either fix it or kill it. Prefers to own banks that are in the doghouse.
BUY
Has further to go. The results in the last 2 quarters have both been surprises on the upside and usually when you get one or two surprises there are more to follow.
TOP PICK
Banking sector would be his favourite for the long term. The historical 10 year return for the banking sector was 13%. This one for the short term opportunity. Hasn't settled with Enron, but almost settled with the range. That uncertainty has taken the stock down unfairly.
BUY
Likes all the Canadian banks. They have reserves greater than all the loans they have potentially identified as being bad. Solid balance sheets. They all trade around 12 X earnings. Dividend yields from about 2.5% to 3.5%. Getting paid more than you would on a GIC.
BUY
Financials have rallied because interest rates have stayed stable. The question is will bank stocks get cheaper when interst rates rise. Doesn't thinks so because they are still trading at reasonable valuations of 12/13 X earnings. You are still earning 3/4%.
HOLD
Her 2 favourite banks are Bank of Nova Scotia (BNS-T) and Toronto Dominion (TD-T). This bank seems to be making some progress on their disappointing US strategy.
COMMENT
Between Bank of Nova Scotia (BNS-T), Royal (RY-T) and Toronto-Dominion (TD-T), TD would be his 1st choice. It has a better valuation and its ROE is quite high. Royal would be his next pick because the ROE growth is spectacular.
DON'T BUY
In the aggregate, banks have done very little this year. They are all trading at 55 year valuation highs. There's no fair market valuation support for them to go much higher.
DON'T BUY
Had a wonderful step up which he missed. It accomplishe a catch-up with the other banks. Would stand aside for the time being.
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