TSE:RY

Royal Bank (RY.TO)

300.09
-0.61 (0.20%)
as of Aug 17, 2026, 8:00:00 pm Market Open.
1478 watching
0
Investor Insights
star iconAug 16, 2026, 12:00 am

This summary was created by AI, based on 58 opinions in the last 12 months.

Royal Bank (RY-T) is widely regarded as the top Canadian bank and has excelled in capital markets and wealth management. Recent reviews highlight its strategic decisions, such as the acquisition of HSBC, which position it well for future growth through cross-selling products. While the Canadian banking sector has performed strongly, the stock is trading at historical highs in terms of price-to-earnings ratios, prompting concerns about valuation among some analysts. The bank's dividend yield, while lower than 3%, has shown a consistent upward trend. Many experts see RY as a cornerstone holding in their portfolios due to its stable growth and ability to maintain capital during market uncertainties. Despite the current high valuations, RY continues to be recommended as a solid long-term investment, with potential for growth as market conditions evolve.

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Consensus
Buy
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Valuation
Overvalued
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Similar
TD, TD
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.

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.
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