Should You Buy TD Bank Stock on the Dip?

TD Bank (TSX:TD)(NYSE:TD) stock was down marginally in mid-afternoon trading on June 29. The
second-largest bank stock by market cap has dropped 14% in 2022. That has put the stock into negative
territory in the year-over-year period. Bank stocks like TD have steadily declined in the face of soaring
inflation, rising interest rates, and a renewed bear market. Should you look to buy the dip in TD Bank
right now?

The bank released its second quarter 2022 results on May 26. It did show signs of slippage as adjusted
net income fell to $3.71 billion or $2.02 per share compared to $3.77 billion or $2.04 per share in the
second quarter of 2021. Regardless, it still delivered net income growth in its Canadian and United
States Retail segments.

Looking ahead in its second quarter earning report, TD Bank warned that “economic uncertainties” and
“growing geopolitical tensions” would add to the challenges it is facing in the current climate. Still,
investors can take solace in TD Bank’s incredibly strong balance sheet and heavy diversification. Once
again, Canadian financial institutions are well suited to face down an economic downturn.

Shares of this bank stock currently possess a favourite price-to-earnings ratio of 10. TD Bank also has an
RSI of 29, which puts it in technically oversold territory. This is a great time to snatch up Canada’s top
bank stocks at a discount.