3 Canadian Bank Stocks To Buy For 2018

For investors considering RBC as a top Canadian bank to invest in during 2018, a good entry point will be key for maximum returns. 2 possible entries can be considered:

  • Either a pullback towards the bottom of the sideways channel (the top channel ranging between 90 and 97.5 CAD).
  • Waiting for the breakout to the upside of 97.5 which will likely signal another run up similar to the one from 75 CAD to 90 CAD.

Another scenario to consider is a combination of both which basically means taking positions before the breakout and adding when the stock is near support (if it gets there, otherwise adding after the breakout has been tested).

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RY canadian bank stock to buy 2018

#2: Toronto Dominion TD Financial Group

Td Bank is starting to reap the benefits of investing early on in the American market. For 2017, this Canadian bank published robust earnings and we expect 2018 to truly reflect the return on investment in the US market. Below are some of the reasons we believe this is another top performing Canadian bank in 2018.

From their Q3 earnings, we picked the following to illustrate the growth potential TD has:


For the nine months ended July 31, 2017, compared with the corresponding period last year:

  • Reported diluted earnings per share were $4.08, compared with $3.47
  • Adjusted diluted earnings per share were $4.18, compared with $3.64.
  • Reported net income was $7,805 million, compared with $6,633 million.
  • Adjusted net income was $7,984 million, compared with $6,945 million.

TD’s operations in the US market has contributed to some extent to these earnings and we expect more to come.

U.S. Retail net income was $901 million (US$678 million) this quarter (Q3 2017) compared with $788 million (US$609 million) for the third quarter last year, an increase of 14% (11% in U.S. dollars).

TD Bank also announced its intent to repurchase for cancellation up to an additional 20 million of its common shares, subject to regulatory approval. Very positive for investors.

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