Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is going to release its quarterly results later this week. It’ll be the first glimpse investors get into how the top bank stock is doing during the COVID-19 pandemic. And with shares of TD not far from their 52-week low, it could be an opportune time for investors to think about buying the stock.
A bad earnings result could send TD’s shares lower, while a better-than-expected performance could send them back above $60. The question is which scenario is more likely at this point. If what happened to the U.S. banks is any indication, then TD shares aren’t likely to see a bump up in price this week.
When JPMorgan Chase & Co (NYSE:JPM) reported its quarterly results last month, the stock declined a bit but it’s been fairly stable since then. The banks have been increasing their provisions for credit losses in anticipation of an economic downturn, and that’s been impacting their bottom lines.
We’ll likely see the same from Canadian banks when they go to report this week.
For what it’s worth, the top Canadian bank’s been a lot more stable as shares of TD are down 24% since the start of the year compared to a 35% decline by JPMorgan.
If you’re looking to buy shares of TD, you may want to wait until after the company releases its latest results, as odds are it isn’t going to be a particularly encouraging quarter. And it could give investors the opportunity to buy the stock at an even lower price.
