Royal Bank (RY-T)

Would prefer over TD bank. Excellent business that is rock sold. Very strong balance sheet. Excellent brand name in Canada. 

If you're in a bull market, you want to own the strongest stocks you can find. He prefers "good, getting better", some kind of positive change that could add to the valuation, and where other people agree with him. He owns RY, CM, and NA; firing on all cylinders.

Offers consistent returns and diverse financial services. They have great leadership and stability. Prefers this to TD overall, though TD has a better valuation and potential upside (with many caveats--she her comments under TD).

It's stable. Good managers. Net interest margins are lighter than their peers, but this is offset by a lower net charge-off ratio, reflecting a high quality loan book. So they can leverage their balance sheet to boost earnings and ROE. Last year's selloff was irrational, so RY stock was ripe for a bounce-back. But shares are high now and he'd look elsewhere. $150 is a good entry point. It's not overvalued at 14x forward, though it's high and pricing in future upside. Shares are due for a breather.

Don't sell here, no reason to get off the train. Good things going on. 

RY is certainly he leader in terms of size amongst the big Canadian bank stocks. NA has actually outperformed over numerous time periods, but over a three year timeframe, RY has been number 1. We would not say it is too late to purchase. Bank stocks and in particular RY have done a great job of returning capital to shareholders through dividend growth over recent years acting as relatively low risk investments. At 14x forward earnings, we think it is buyable.
Unlock Premium - Try 5i Free  

Loves the Canadian banks long term. His favourites are NA and RY right now.

A leader in the sector over the last year.

Breakout, continuing to push higher. A machine, continues to perform. No reason not to like this stock. Next year, could be 15-20% correction in markets, so wait till then to deploy a lot of capital. But he's OK with small, incremental additions now.

Peer-leading multiple, around 14x earnings. Very well run. Likes it, but valuation keeps him away. For new money, hunt for more value.

A leader in the group, stick with it.

Great company, most diversified bank in Canada. Best platform. Lowest risk, as they have different areas of growth, and you want diversified sources of revenue growth. Hold for the long term, but take some profits, as valuation has really jumped up a step. 

Would recommend buying if stock has a pullback. Chart indicating base strength. Would recommend investing with lower interest rates. 

Best bank in Canada. Not dirt cheap, but that's not necessarily what he looks for. Looks for businesses that are building out with smart moves, such as HSBC purchase. Cashflow is one metric he looks at. Will continue to compound earnings. A buy, even though it's run up.

They lack company-specific problems of other banks, which helps performance. Canadian banks will do okay, because they are an oligopoly. RY's capital business is doing well with high returns. Aren't doing acquisitions, so are not paying for mistakes (like its peers). The smart M&A growth rate is paying. Buy on pullbacks. Is a hold at this price. At 15x PE, the upside is limited.