The big banks have reported their earnings and now that the dust has settled, investors may want to consider buying some shares. Despite posting some sizeable losses as a result of heavy credit loss provisions, investors weren't spooked by how the banks did this round of earnings.
That's a good sign as it may suggest that bank stocks may have already reached the bottom and that there's support around where they are right now.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) saw its share price jump when it released its earnings last week, even though its net income for the quarter was half of what it was a year ago. The stock's currently around the $60 mark and that's been about a high for TD since the pandemic and when share prices crashed in March.
For one of the country's top stocks, investors could be getting a scorching hot deal. Shares of TD are trading at around nine times earnings and just 1.3 times their book value. In addition to that, investors can also get a terrific dividend that's yielding more than 5% per year.
There's still the risk that the worst may be yet to come from the pandemic.
But TD's in a good place to be able to weather that storm and by waiting too long and hoping for more of a dip in price, investors may miss out on this opportunity altogether.
With a great dividend, a good price, and a bright long-term future, now may be the time investors consider buying TD and other bank stocks before they inevitably rise back up in price.
