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
0
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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BMO
BUY
Management is really focused on not taking a lot of risks and watching their loan book. Happy that they sold off TD Waterhouse in the US. Likes their US strategy of making acquisitions through Bank North.
BUY
The financial sector tends to hold its value, pricipally because they have good dividend yields and well covered dividend yields. We are in a rising interest rate environment however which tends to be a bit of a headwind for the financial sector, more so banks than insurance.
PAST TOP PICK
(A Top Pick June 30/05. Up 3.5%.) Has a very good strategy in the US. Have grown their weekly fund business very aggressively. Management is very risk focused.
BUY
Likes this one and what management has done with the company.
TOP PICK
Should have good growth. 2 risks facing all banks. We are topping out on the credit cycle so you want to look for a bank with less exposure there. TD has a very large retail presence which tends to immunize them. All banks are generating a significant amount of capital and feel that this one will deploy it for good growth through their US bank.
BUY
Banking sector would be his favourite for the long term. The historical 10 year return for the banking sector was 13%. Would love the entry point to be a little lower, but not a long term place to be.
PAST TOP PICK
(A Top Pick May 18/05. Up 9%.) Continuing to buy for new accounts. Likes the banking sector as a whole.
BUY
Also involved with the Enron fiasco, but not to the same extent as CIBC (CM-T). Not worried about them and likes this bank. Well run. Likes their exposure of moving slowly into the US.
TOP PICK
Has a good retail franchise and management is very focused on this. Likes the Bank North deal that they did in the US as well as getting rid of TD Waterhouse in the US. Good yield. Lots of good growth in it.
TRADE
Merely a banker to Enron, so they were more a victim than a participant, but they will get tarred for not doing adequate due diligence. Will only be a few hundred million rather than billions.
BUY
Likes all the Canadian banks. They have reserves greater than all the loans they have potentially identified as being bad. Solid balance sheets. They all trade around 12 X earnings. Dividend yields from about 2.5% to 3.5%. Getting paid more than you would on a GIC.
BUY
Likes all the Canadian banks. Prefers buying Bank of Montreal (BMO-T) at the moment as they are in the best position for any takeovers or mergers.
BUY
Any one of the Canadian bank should be your long term core holdings. This and CIBC (CM-T) is one of the exciting banks, but not necessarily a stable one for cautious investors. Has 2 good US acquisitions. Would be a good holding along with a more stable bank holding.
TOP PICK
Banks are mispriced assets. His model price is $65 which is well over a 20% differential. Over the last couple of years, his model price has constantly moved up with all the banks. Pretty well likes all the banks except for the Commerce (CM-T). There's a buying opportunity. 3% yield.
BUY
Probably a better buy now with the Ameritrade transfer. Any one of the bank stocks are OK.
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