The Motley Fool

A Top Stock to Buy in June

Andrew Button: Toronto-Dominion Bank

Can there be any doubt at this point that Toronto-Dominion (TSX:TD)(NYSE:TD) is Canada’s best bank? After a disappointing start to the year, TD bounced back in Q2, with earnings up 9% and revenue up 8.5% year-over-year. TD’s growth in the quarter was well ahead of Royal Bank of Canada, which grew earnings at just 7% year-over-year, showing that while TD may not be the largest bank in Canada, it definitely has the most upside.

As usual, TD’s growth in its most recent quarter was driven by U.S. Retail. That business unit grew 29% year-over-year, mainly on the strength of TD Ameritrade, which grew by a phenomenal 93%. U.S. Retail now contributes $1.3 billion in quarterly profit for TD, which means that it could soon eclipse Canadian Retail as TD’s single largest business unit.

More moderately good news came from Wholesale Banking, which posted $221 million in net income, up from a net loss in Q1. Although the unit was down from Q2 2018, the fact that it has more than recouped its Q1 losses is a strongly positive sign. Additionally, Wholesale is a comparatively small business unit for TD, so even if it remains weak, it shouldn’t hurt overall results too much.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share. Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune. Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Andrew Button owns shares in The Toronto-Dominion Bank. The Motley Fool Canada doesn't have a position in any stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.