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Nov 29, 2018
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Royal Bank Rises to Record Profit

Royal Bank Rises to Record Profit

The Royal Bank of Canada's Q4 earnings reached a net income of C$3.25 billion, beating expectations and growing by 15%. Net profits rose to C$12.4 billion -- a new record.

Commercial banking, strong capital markets and wealth management and insurance helped boost the bottom line for the bank. In a statement, RBC president and CEO Dave McKay said, "Our diversified business and geographic mix delivered good revenue growth, while we prudently managed risk and delivered a premium return on equity."

In the fourth quarter RBC earners C$2.24 per share, up from C$1.92 in the same period last year. Analysts had been expecting C$2.12 per share. 

Related Ticker: RY

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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.


RY's MACD Histogram crosses above signal line

The Moving Average Convergence Divergence (MACD) for RY turned positive on October 15, 2026. Looking at past instances where RY's MACD turned positive, the stock continued to rise in 26 of 46 cases over the following month. The odds of a continued upward trend are 57%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

RY moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend.

The 10-day moving average for RY crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 54%.

Following a +1.48% 3-day Advance, the price is estimated to grow further. Considering data from situations where RY advanced for three days, in 167 of 348 cases, the price rose further within the following month. The odds of a continued upward trend are 48%.

The Aroon Indicator entered an Uptrend today. In 148 of 326 cases where RY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 45%.

Bearish Trend Analysis

The 10-day RSI Indicator for RY moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In 16 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 37%.

The Momentum Indicator moved below the 0 level on November 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on RY as a result. In 35 of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 47%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where RY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 54%.

RY broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is 12 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. RY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron PE Growth Rating for this company is 71 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.080) is normal, around the industry mean (1.500). P/E Ratio (12.652) is within average values for comparable stocks, (11.703). Projected Growth (PEG Ratio) (2.257) is also within normal values, averaging (2.139). Dividend Yield (0.025) settles around the average of (0.035) among similar stocks. RY's P/S Ratio (5.537) is slightly higher than the industry average of (3.867).

Notable companies

The most notable companies in this group are JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), HSBC Holdings PLC (NYSE:HSBC), Wells Fargo & Co (NYSE:WFC), Citigroup (NYSE:C), Barclays PLC (NYSE:BCS).

Industry description

Major banks are among the biggest companies in the world, often times with global reach and market capitalizations in the multi-billions. Large banks often have multiple arms spanning different disciplines, from deposits, to investment banking, to wealth management and insurance. The biggest banks often have key competitive advantages over smaller players in the industry in terms of brand recognition, cost of capital, and efficiency. Think J.P. Morgan, Bank of America, Wells Fargo, and Citigroup.

Market Cap

The average market capitalization across the Major Banks Industry is 195.36B. The market cap for tickers in the group ranges from 1.04M to 889.14B. JPM holds the highest valuation in this group at 889.14B. The lowest valued company is BACRP at 1.04M.

High and low price notable news

The average weekly price growth across all stocks in the Major Banks Industry was -1%. For the same Industry, the average monthly price growth was 1%, and the average quarterly price growth was 12%. SAN experienced the highest price growth at 11%, while FRBT experienced the biggest fall at -1%.

Volume

The average weekly volume growth across all stocks in the Major Banks Industry was -37%. For the same stocks of the Industry, the average monthly volume growth was -26% and the average quarterly volume growth was -31%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 59
P/E Growth Rating: 53
Price Growth Rating: 48
SMR Rating: 4
Profit Risk Rating: 20
Seasonality Score: 37 (-100 ... +100)
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published General Information

General Information

a major bank

Industry MajorBanks

Industry
Major Banks
Address
1 Place Ville Marie
Phone
+1 416 842-2000
Employees
100000
Web
https://www.rbc.com
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