TSE:TD

Toronto-Dominion Bank (TD.TO)

158.40
+0.37 (0.23%)
as of Jun 5, 2026, 6:06:39 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 64 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has demonstrated significant recovery over the past year following its past money laundering scandal. Although the bank has recorded strong earnings and benefits from a robust Canadian economy, many analysts consider its current valuation to be on the higher end, with price-to-earnings (PE) ratios reaching levels beyond historical norms. Despite the impressive stock performance, experts suggest that the valuation may now be too rich, prompting some to recommend trimming positions or waiting for a more favorable buying opportunity. While TD maintains a strong position within the Canadian banking sector, growth prospects remain constrained, particularly in the U.S. market due to regulatory issues. Overall, while the outlook for TD remains positive, caution is advised due to potentially high valuations and limited growth avenues.

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Consensus
Hold
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Valuation
Overvalued
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Similar
RY, RY
PAST TOP PICK
(A Top Pick Dec 7/06. No change.) Worries about interest-rate cuts and bad debts held the stock back. He still likes and would buy.
TOP PICK
Excellent quarter. Well-managed. At current price, his target would give you 10%-11% plus the dividend for a total of 13%-14%. Good entry point.
COMMENT
Investors are looking at this one because of their expansion into the Northeast US through TD Bank North. Earning an extraordinarily high ROE at the present time. Its profile is more retail than a lot of the banks. He prefers other banks.
COMMENT
Earnings growth on Canadian banks looks good, but the valuations relative to US and global banks have crept up considerably. If he had to pick one bank, this would be the one because of their domestic business, which continues to be strong.
PAST TOP PICK
(A Top Pick Nov 15/06. Up 3.8%.) Would still be his favourite of Canadian banks. Still doesn't have their US Bank North firing on all cylinders but is starting to turn around.
COMMENT
At about the midpoint in the range of valuation for Canadian banks. Royal (RY-T) and Bank of Nova Scotia (BNS-T) are his favourites, followed by CIBC (CM-T). This Bank would be his 4th pick.
COMMENT
Long-term outlook for Canadian banks in general is excellent. This is one of the better run ones. Returns on their US Bank North have been low and they have changed management and will be able to build on it.
BUY
Model price is $73.73, a 9% positive differential.
BUY
His favourite. Out of favour having lagged the others with their troubles with US TD Bank North, which got squeezed on margins. Bank North is a small percentage of their assets and is an easier fix.
WEAK BUY
Everyone should have bank representation and this is a good one to own. Feels there’s better valuations in banks outside of Canada.
DON'T BUY
Financials have had a great run. This one is the weakest of the 5 banks. Having some problems with their credit and loan quality that the others are not having. Growth hasn’t been up to par.
BUY
Banks are a relatively good place to be. Earning extremely good return on equity. Capital investment market has been fairly strong. Not as interest sensitive as they used to be. Good dividend yields. Recently made an offer to Buy in the rest of their US asset, Bank North. Slowdown in the US could be a concern,
TOP PICK
Has been the under performer in banks because of concerns of their US holding, Bank North. This is turning around, making acquisitions, etc. Expect earnings will increase next year. 2.8% dividend could be increased.
BUY
The cheapest bank in terms of current valuation. Good yield. One of his favourites. Likes that they have taken over management of their US Bank North subsidiary.
BUY ON WEAKNESS
Banks are great long-term investments. Historically they increase their dividends every year. In the short term, this one could be in for a little bit of rocky road because of their US Bank North holdings. This is probably the best run Canadian bank long term.
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