Royal Bank of Canada: Why I'm Waiting For A Dip Before Buying
Summary
- Royal Bank of Canada stock is up nearly 30% YTD but may not be able to replicate these gains in the short term.
- The excess returns model shows that RY stock is undervalued, yet historical multiples suggest it's overpriced, limiting short-term upside.
- Unaffordable housing prices in Canada and elevated leverage pose risks to RBC's earnings, despite its strong historical performance and high ROE.
- The technical chart suggests that the stock's rally has mostly played out, adding to the risks.
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