TSE:RY
Royal Bank (RY.TO)
Financials 
Technical Analysis 
Jul 6, 2026, 12:00 amThis summary was created by AI, based on 55 opinions in the last 12 months.
The Royal Bank (RY-T) is widely recognized as one of Canada's leading banks, noted for its stability, growth potential, and diversified business model, particularly in wealth management and capital markets. Experts highlight its impressive quarterly earnings, strong cash reserves, and the strategic acquisition of HSBC Canada, which is expected to enhance its global capabilities. However, there are concerns regarding its current high valuation, trading at a significant premium compared to historical averages, particularly with a price-to-earnings ratio around 17x. While many analysts maintain a bullish outlook, recommending it as a 'top pick,' some suggest trimming positions due to the elevated valuations and potential market volatility. Overall, RY is seen as a reliable investment for long-term growth, yet prospective investors are advised to wait for a more attractive entry point.
He's a bit wary on the sector, and questions the high valuation as well. Always traded at a premium -- stability, growth, strength in wealth management. But the premium has eroded, as they're all expensive now; that argues for holding onto this one. CEO stated that demand for credit and loans is staggering, which would support another leg up.
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Premium contentAs the Canadian economy appears more resilient than analysts estimate, we reiterate RY again as a TOP PICK. Most recent quarterly earnings showed growing cash reserves, while debt was retired and shares bought back. The Capital Markets division saw a 23% increase in earnings over the year. The dividend has grown over 10% annually over the past five years. We recommend trailing up the stop (from $242) to $251, looking to achieve $333 -- upside potential of 18%. Yield 2.2%
(Analysts’ price target is $271.11)
It doesn't matter which Canadian bank you bought 20-30 years ago; all offered double-digit returns with growing dividends. No question that their valuations are the highest in a long time, because they sailed through all worries (higher mortgages, a Toronto housing collapse didn't happen, tariffs, Iran war). Meanwhile, the banks have transformed more to fees and recurring revenue.
Premium contentToday he's taking money off the table in the sector. Why? Valuation. Trading today at 2.6-2.7x forward book value, yet the business hasn't really changed all that much. In on the SpaceX IPO, which is like money from heaven.
Martin Cobb, ASIPShe's been wrong about the Canadian banks the past year, that they're expensive. They were up 30% last year + 20% this year. These stocks are priced for perfection and trading well above historical averages in PE. Wait. Last year, they released provisions for loan losses into earnings, which was a temporary boost. Their only growth aspect this year is how many branches a bank can close, which is a weak growth driver. She hasn't bought any banks this year.
He's a big fan of EQB. Phenomenal CEO, who'll take company to new heights. Will most likely outperform in next 3-5 years. Organic growth will be higher. A more agile and flexible organization. Digitally native, so it's built to adapt. Very conservative provisioning.
You buy RY for stability, its huge infrastructure, and capital markets business. Sufficient provisions for consumer credit issues. Very solid hold for the longer term.
Both are a Buy in his books.
Premium contentWe reiterate as a TOP PICK RY, one of five Canadian banks who have partnered to create the Defense, Security, and Resilience Bank (DSRB) designed to provide funding to the Government of Canada's commitment to boost military spending. Recent reported quarterly earnings showed a 12% increase in net income along with growing cash reserves as the bank bought back shares and retired debt. It trades at 17x earnings, 2.6x book and supports a 16% ROE. We recommend maintaining the stop at $220, looking to achieve $284 -- upside potential of 18%. Yield 2.6%
(Analysts’ price target is $245.07)
His favourite, the 800-pound gorilla. The biggest, the baddest, and it dominates.
Brendan Caldwell
With Iran conflict, yield curve has gone a bit flat, so net interest margins aren't going to be as good. If the conflict persists, earnings will possibly decelerate. This name is best positioned for all that. Usually trades at 11% premium to peers, now 8%.
If you assume that the conflict gears down to more manageable levels, you could buy the banks here and this name is the best choice.
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Royal Bank (RY.TO) Frequently Asked Questions
What is Royal Bank stock symbol?
Royal Bank is a Canadian stock, trading under the symbol RY.TO (previously RY-T on Stockchase) on the Toronto Stock Exchange (RY-CT). It is usually referred to as TSX:RY or RY.TO
Is Royal Bank a buy or a sell?
In the last year, 50 stock analysts issued a Buy, Sell, or Hold rating on RY.TO (previously RY-T on Stockchase). 31 analysts recommended to BUY and 6 analysts recommended to SELL the stock. The latest stock analyst rating is WEAK BUY. Read the latest stock experts' ratings for Royal Bank.
Is Royal Bank a good investment or a top pick?
Royal Bank was recommended as a Top Pick by Greg Newman on 2026-03-20. Read the latest stock experts ratings for Royal Bank.
Why is Royal Bank stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Royal Bank.
Is Royal Bank worth watching?
Royal Bank is followed by 1476 investors on Stockchase and is a trending stock that is worth watching.
What is Royal Bank stock price?
On 2026-07-06, Royal Bank (RY.TO) stock closed at a price of $295.29.
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You can buy those calls back, and then roll up to $320 or so. If you buy back the near-term call, and then sell a longer-term call, chances are it won't cost you any money.
Absolutely don't sell a put to oblige yourself to buy more, not right now. You want to sell puts when the premium is really good. Premium here isn't good, as stock's been heading straight up.
Great quarter. Belle of the ball of the banks. Strength in Canadian lending in both personal and commercial. Less cyclical than before, as rough markets lead to more trading and helps diversify earnings profile.