Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell Royal Bank of Canada (RY) stock, we need to analyze both technical and fundamental factors.

Technical Analysis:

RY's stock price is currently at 114, with mixed technical indicators. The RSI values (52.51 for RSI_6 and 45.75 for RSI_14) suggest that the stock is not in overbought or oversold territory. The MACD is slightly negative (-1.59), indicating some bearish momentum, but the signal line is close to crossing, which could signal a potential reversal.

The stock is trading near its Fibonacci support level (S1: 109.62) and is close to its 20-day moving average (114.32). This suggests that the stock may find support at current levels, potentially leading to a bounce.

Fundamental Analysis:

Royal Bank of Canada is a well-established financial institution with a diversified business model. The company has a strong track record of stability and dividend payments. With an upcoming Investor Day on March 27, 2025, and a conference appearance by Graeme Hepworth on March 25, 2025, there may be positive catalysts for the stock in the near term.

Event Impact Assessment:

The upcoming Investor Day could provide insights into the company's strategy and financial outlook, potentially driving positive sentiment. Additionally, Graeme Hepworth's appearance at the National Bank Financial's conference could provide further clarity on the company's risk management and growth plans.

Conclusion:

Given the current technical setup and the upcoming events, it may be a good time to consider buying RY stock. The stock is near support levels, and the upcoming events could provide positive catalysts.

RY stock is expected to reach a price of $115 by the end of 2025. This prediction is based on its current price of $114, strong Fibonacci pivot support at $111.79, and resistance levels suggesting upward momentum. The stock's RSI of 45.75 indicates a neutral position, with potential for growth driven by RBC's strategic initiatives and upcoming Investor Day presentations.

The S1 support level for RY Stock is $111.62 ,The R1 resistant level for RY Stock is $116.94.

As of the end of day on 2025-04-02, the price of RY Stock was $113.59.

The target price for RY Stock according to analyst rating is 130.71, with the highest price target at 138.65 and the lowest at 116.94. Analysts have a Moderate Buy rating on RY Stock overall.

The market cap of RY is $162.3B.

Analysis and Insights

To determine if Royal Bank of Canada (RY) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

Royal Bank of Canada's valuation metrics indicate a moderate valuation relative to its peers. The price-to-earnings (P/E) ratio has decreased slightly from 14.96 in Q4 2024 to 14.42 in Q1 2025, suggesting a stable valuation. The EV/EBITDA ratio has also declined from 23.91 to 20.97, indicating a more reasonable valuation. The price-to-sales (P/S) ratio remains stable at 4.46, while the price-to-book (P/B) ratio has increased marginally from 2.02 to 2.04. The dividend yield has decreased slightly from 3.33% to 3.22%, reflecting a minor adjustment in investor expectations.

Financial Performance:

The bank's financial performance shows strength and stability. Total revenue increased from CAD 14,010 million in Q4 2024 to CAD 15,867 million in Q1 2025, while net income rose from CAD 4,128 million to CAD 5,031 million during the same period. The return on equity (ROE) improved from 14.09% to 15.05%, and the net margin increased from 30.14% to 32.34%. These improvements suggest strong operational efficiency and profitability.

Market Sentiment and Technical Analysis:

The Relative Strength Index (RSI) for RY is at 53.95, indicating a neutral position without signs of overbought or oversold conditions. The MACD is slightly negative at -0.95, suggesting a stable trend. The stock price has been trading in a narrow range, with support at CAD 113.06 and resistance at CAD 121.74.

Recent News and Events:

Royal Bank of Canada is scheduled to host an Investor Day on March 27, 2025, which may provide further insights into its strategic direction and financial outlook. Additionally, Graeme Hepworth, the Chief Risk Officer, is set to speak at the National Bank Financial's 23rd Annual Financial Services Conference on March 25, 2025, which could impact investor sentiment.

Conclusion:

Based on the analysis, Royal Bank of Canada (RY) does not appear to be overvalued. Its valuation metrics are reasonable, financial performance is strong, and market sentiment remains stable. While the stock may not offer significant upside in the short term, it remains a solid investment for those seeking stability and consistent returns.

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the US and other countries.

The price prediction for RY Stock by 2030 is expected to range between $120 and $140. This forecast is based on current Fibonacci levels, strategic growth initiatives, and positive analyst sentiment.

RY has a total of 94000 employees.