TSE:TD

Toronto-Dominion Bank (TD.TO)

170.90
+1.61 (0.95%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
2225 watching
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 61 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has seen a significant recovery from its recent challenges, notably the money laundering scandal, with many experts noting its potential for growth in the long term, especially within the Canadian economy. However, the consensus among analysts indicates that the stock is currently trading at historically high P/E ratios, raising concerns about its valuation and suggesting that it may be overvalued by approximately 5% or more compared to past norms. While some believe TD's impressive earnings growth and its strategic positioning in the U.S. market could still lead to positive outcomes, there are warnings about the high valuations and the possibility of a market correction. Analysts seem divided on whether to hold or to trim positions at this point, with a predominant view favoring a cautious approach. Overall, TD remains a strong brand within the Canadian banking sector, but its recent performance raises questions about future growth sustainability amid high valuations.

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Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
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.
TOP PICK
(A Top Pick Aug 10/06. Up 13.7%) Has moved, so it’s probably average for the rest of the group, but feels it’s the best bank. US side is slowly turning around. Looking for 11%-12% total return.
BUY
Banks are going to do OK. Feels rates are going to stay the same giving them leeway to raise dividends, which is the reason to own them. Royal (RY-T) and Toronto Dominion (TD-T) are the biggest retailers, so have the highest margins.
BUY ON WEAKNESS
One of the top 2 banks in Canada. Excellent retail franchise. US operations created some market concerns, but only represents 14% of earnings. Up 5%-6% in the last week because of income trust issues. Expect financials to roll back a little bit.
BUY
Their US subsidiary, Bank North, has been disappointing. Have had a change of management. Still likes this bank overall.
PAST TOP PICK
(A Top Pick Aug 21/06. Up 5.8%.) They are having some issues on earnings from their US operations.
WEAK BUY
It would rank 4th out of the 6 banks that he looks at, but it is part of a group of interest sensitive, high ROE, stable companies. Prefers others.
TOP PICK
Bank North earnings have not been great because of margin squeeze. CEO is being replaced. TD Ameritrade is doing well on high trading volumes. 2nd biggest retail bank in Canada with a very strong position in mutual funds. 3% yield.
BUY
You do well holding this in your portfolio along with other banks.
WEAK BUY
Bank space is a less attractive than some of the other spaces. A little concerned about the news of BankAmerica giving free online trades. You probably won't get hurt and they do give a nice yield. Would prefer a bank with more global exposure.
BUY
Generally likes the banks. Payout ratio in terms of dividends to earnings, is only 40% so they still have room to increase dividends. This one has more exposure to the US which will have a slower growth due to competition.
BUY
Three favourite banks are the Commerce (CM-T), Toronto Dominion (TD-T) and the Royal (RY-T)
BUY
Loves the banks, this is his second favourite. Banks are in a terrific spot. They should be ok.
PAST TOP PICK
(A Top Pick July 5/06. Up 13.6%.) It was undervalued. Still likes it.
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