Please ensure Javascript is enabled for purposes of website accessibility

4-Star Stocks Poised to Pop: Royal Bank of Canada

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in these four stars.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Royal Bank of Canada (NYSE:RY) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Royal Bank's business, and see what CAPS investors are saying about the stock right now.

Royal Bank facts

Headquarters (founded)

Toronto, Canada (1864)

Market Cap

$37.1 billion


Diversified banks

Trailing-12-Month Revenue

$16.1 billion


CEO Gordon Nixon (since 2001)
CFO Janice Fukakusa (since 2004)

Return on Equity (average last three years)


Dividend Yield



Bank of Montreal (NYSE:BMO)

CAPS members bullish on RY also bullish on:

ScotiaBank (NYSE:BNS)
Bank of America (NYSE:BAC)

CAPS members bearish on RY also bearish on:

Toronto-Dominion Bank (NYSE:TD)
Wells Fargo (NYSE:WFC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, 93% of the 460 members who have rated Royal Bank believe the stock will outperform the S&P 500 going forward. These Fools include GrantQ and nathanmcdo.

Four days ago, GrantQ tossed the stock into an attractive basket of Canadian banks:

Canadian banks are the best in the world right now. Guaranteed money-makers even in today's economy. And now they've gone through the pain of writing down bad US debt & issuing new stock, they're poised to recover strongly.

In an earlier pitch from late last month, nathanmcdo tapped Royal Bank as an ideal northern stock for the long run:

Fantastic yields, and fantastic company, the Canadian banks are a shining star in a dark dark night of the financial world ... and this stock as all financial stocks has been beat down. Currently trading at a little below its intrinsic value, and with cheap ratios, and a very high yield, that they will maintain and continue to increase. Also is the largest of the fantastic Canadian Banks.

What do you think about Royal Bank, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. ScotiaBank and Bank of America are Motley Fool Income Investor picks. The Fool's disclosure policy always gets a perfect score.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Royal Bank of Canada Stock Quote
Royal Bank of Canada
$99.34 (0.90%) $0.89
Bank of America Corporation Stock Quote
Bank of America Corporation
$35.91 (2.40%) $0.84
Wells Fargo & Company Stock Quote
Wells Fargo & Company
$45.25 (2.08%) $0.92
The Toronto-Dominion Bank Stock Quote
The Toronto-Dominion Bank
$66.80 (0.75%) $0.50
Canadian Imperial Bank of Commerce Stock Quote
Canadian Imperial Bank of Commerce
$52.17 (1.16%) $0.60
The Bank of Nova Scotia Stock Quote
The Bank of Nova Scotia
$62.40 (0.43%) $0.27
Bank of Montreal Stock Quote
Bank of Montreal
$102.01 (0.91%) $0.92

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.