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
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.

TOP PICK
The big jump in the stock was overdone and expects there will be a pullback. There are a lot of things it still has to do, so it's not a clear cut story. Management is taking action on cahnges needed and they have some really good people.
BUY
Their difficulties in the US is already priced into the market. Has heard that if they sell the US subsiduary, they could make as much as $10/15 a share. Likes the banks in general. Favourites are Bank of Montreal (BMO-T) and Toronto Dominion (TD-T) as they are the cheapest.
TRADE
Banks have been going up because bond yields have been dropping. Dividends are about the same as bond yields, but you also get dividend tax credits. This is not his favourite bank. Prefers the National (#1) and the Bank of Montreal (#2).
BUY
Market is generally negative on the banks because they see the yield curve flattening in the US. In fact, the yield curve has steepend in Canada which is very positive for the banks. Feels you can do better in some of the larger banks, especially Bank of Nova Scotia and Royal Bank.
BUY
Have a good franchise on the retail side and their big mistake is that they have not cut the costs and made it work. Had really good growth on their wealth management side.
DON'T BUY
Has had a wonderful upbull. In 2000 it was $35 and got up to $65. About January 2004 the stock started to meander. There was a dividend, but not much capital appreciation. It is currently at a crossroad. Put a stop/loss in at $61.50.
BUY
Expects bank stocks will do quite well over a 5 year horizon. They do well in retail, wealth management and sometimes in international growth. Have a lot of cash on their balance sheets and can buy back stocks, pay extra dividends or do acquisitions. In the next 12 months the return will be lower than previous.
BUY
Q: Coming into an inheritance. What is a buy for a long term hold that pays dividends? A: Good dividend. 2/3 of gains over time are made from dividends. Good long term hold.
WAIT
Not too excited on the near term prospects on it, but you shouldn't lose a lot here. Really need to address problems in the US. Have a great Canadian franchise. Return on Equity (ROE) is lower than the group and their capital ratios are not as good. Balance sheet is weaker. Until you see them focusing on their US problems, stay clear.
TOP PICK
Was up 4% last year with the group when the majors were up 13%. Essentially a 10% laggard to the group. Whenever a bank has lagged that much, it will catch up. It's hopefully a fixable problem. 2 aspects in the US, mortgages making only a little bit of money, and the broker side.
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