TD Shares Soar 0.77% in Two Days on 334% Net Income Surge

The Toronto-Dominion Bank (TD) shares rose 0.03% today, marking the second consecutive day of gains, with a total increase of 0.77% over the past two days. The share price reached its highest level since June 2022, with an intraday gain of 0.38%.

The strategy of buying TD shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -3.2%, significantly underperforming the market. This indicates that relying on recent highs as a buying trigger and holding for a short duration is not a reliable strategy for TD, leading to underwhelming returns compared to simply holding the stock..

TD's strong financial performance in the second quarter of fiscal 2025 has been a significant driver of its stock price. The bank reported a remarkable 334% increase in net income, reaching $11.1 billion. This substantial growth in profitability has bolstered investor confidence and contributed to the positive momentum in TD's stock.

However, regulatory and compliance issues continue to cast a shadow over TD's operations. The bank has been under observation by Norway's sovereign wealth fund for four years due to past money laundering control issues. Although TD has taken corrective actions, the ongoing uncertainty surrounding the full implementation of compliance improvements has the potential to impact investor sentiment and influence the stock price.

Technical momentum has also played a role in TD's recent stock performance. The shares reached a new 52-week high on June 11, trading at $70.80. This technical strength has attracted investors and contributed to further appreciation in the stock price, reinforcing the positive outlook for TD's shares.