TSE:RY

Royal Bank (RY.TO)

288.01
-1.11 (0.38%)
as of Jun 26, 2026, 8:00:00 pm Market Open.
1477 watching
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Investor Insights
star iconJun 27, 2026, 12:00 am

This summary was created by AI, based on 55 opinions in the last 12 months.

Royal Bank (RY-T) has garnered a strong reputation among experts, with many emphasizing its leading position in the Canadian banking sector. Analysts have highlighted solid earnings growth, improved capital reserves, and strategic moves such as the acquisition of HSBC Canada that bolster its international presence. Despite the stock trading at a premium valuation, which some view as excessive, many experts consider it a dependable long-term investment, citing its consistent dividend increases and robust fundamentals. However, caution is advised due to high current valuations and concerns over a potential downturn in the broader banking sector. The consensus reflects a belief in the bank's resilience, although calls for profit-taking and a waiting strategy for better entry points have emerged as common themes.

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Consensus
Hold
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Valuation
Overvalued
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Similar
TD,TD
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.
BUY
Top 3 choices in banks for the long term would be Toronto Dominion (TD-T), Bank of Nova Scotia (BNS-T) and Royal Bank (RY-T). Where this could be wrong is if the Bank of Montreal (BMO-T) gets taken over at some point and it would be thw big winner. Canadian Imperial Bank of Commerce (CM-T) is not particularily cheap right now.
BUY
Had a pop a few months ago because they started to post some better profit growth again. Was the weak sister of the banks over '01 & '02. Has a very high ROE level at 18%. Recent growth rate is very strong which means it is probably going to deliver some positive earnings surprises.
BUY
Canadian banks continue to offer good value on a medium time frame. If we were to see a rapid ratcheting up of interest rates, they would be vulnerable, but this is not expected. The banks offer reasonable value here.
BUY
Banks are the cheapest in the financial area based on 12.2 to 12.8 X price earnings.
BUY
Likes Bank of Nova Scotia (BNS-T), National Bank (NA-T) and Royal (RY-T) better than CIBC (CM-T) which has chronically one of the worse performing of the Canadian banks. They are more profitable, better organized and more efficient.
DON'T BUY
What happens in the US ultimately works its way into the Canadian market. US banks are having a very difficult time and are down about 7% year to date. Canadian banks have had good yield support, but they really are not making a lot of headway. They are basically trading sideways.
DON'T BUY
Bank stocks are starting to top which is not surprising. The bull market started in 2002 and we are 2 1/2 years into the bull market. That's usually the time bank stocks start to move down.
DON'T BUY
Doesn't like the banks. They have just come off 52 week highs. Historically they always give you a chance to buy at some point and he is going to wait with his hands open at prices he is willing to pay. Wait until they get ugly.
BUY
Using P/E ratios, banks are among the cheapest in the financials. Bank of Montreal (BMO-T) and Bank of Nova Scotia (BNS-T) are the cheapest followed by Toronto Dominion (TD-T) then by Royal (RY-T) and CIBC (CM-T). His favourite is Toronto Dominion. Michael Sprung, of his firm, likes Bank of Nova Scotia and CIBC.
BUY
Prefers Toronto Dominion (TD-T) which has made a lot of good strategic moves with their amalgamation of Canada Trust and acquisition of Bank North in the US. Royal looks like it has finally turned around and was under owned.
PAST TOP PICK
(A Top Pick Jan 4/05. Up 14.5%.) Happened quicker than he expected. Now it's averaged value and you need follow through. Not trading at a premium yet, and doesn't deserve it. Can probably see high $70's in a year.
WAIT
Had one good quarter after eight bad ones and would like to see if their turnaround in their US acquisitions can be sustained.
BUY
Surprised in sudden jump in stock price. Compelling buy below $60, less compelling at $72 but still top 3 bank picks. Present price trading at 12 times
PAST TOP PICK

(Top Pick Dec 3/04. Up 14%.) Was a speculative call. He was stopped out.

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