TSE:RY

Royal Bank (RY.TO)

285.07
-0.56 (0.20%)
as of Sep 28, 2026, 8:00:00 pm Market Open.
1480 watching
0
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.
HOLD
Q: Bought both Bank of Nova Scotia (BNS-T) and Royal Bank (RY-T). Nova Scotia has not moved, but Royal has done well. A: Owning both is a good move. Nova Scotia has expertise outside the country with a great cost structure while Royal has a North American strategy and a great brand name. With both together, you'll get a better return for the risk.
BUY
Canadian banks have been good performers. His 2 favourite banks stocks are Toronto Dominion (TD-T) and Bank of Nova Scotia (BNS-T). Also likes this bank.
BUY
Believes this stock will split soon. Also due for a dividend increase. This stock had been oversold and never deserved to be under $60. Might be a little bit overbought right now. Expecting pretty good earnings.
WEAK BUY
No longer a mispriced asset. The model price is $79.63. Would prefer Toronto Dominion (TD-T), National Bank (NA-T) or Bank of Montreal (BMO-T) because there are wider differentials between the stock prices and his model prices.
HOLD
Probably a split coming. Feels the stock is a little overpriced. Yield is now below that of the other banks. A premier bank and one of the best run in North America. US operation is showing some improvement.
DON'T BUY
In the last couple of year, was a poor absolute and relative performer to the other banks. Last quarter was good. Stock jumped up and has now been sideways/up a little bit and people are wondering if there is follow through to that. Would trade it in for another bank stock such as National (NA-T) Bank of Montreal (BMO-T) or a life insurance company.
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