TSE:TD

Toronto-Dominion Bank (TD.TO)

158.40
+0.37 (0.23%)
as of Jun 5, 2026, 6:06:39 pm Market Open.
2224 watching
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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
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.
COMMENT
Banks have reported very good numbers. With interest rates peaking, and maybe declining, there is probably no valuation pressure. Can see 10% growth in the Banks. Prefers Toronto Dominion (TD-T).
BUY
The spread between short-term and long-term rates will probably widen which is quite good for the banks. Feels that all the banks are good investments here. Likes Toronto Dominion (TD-T) and Royal (RY-T), which are gaining market share.
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