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.

consensus icon
Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
BUY
Exceptional. Very strong leadership. Likes the way they have entered into the US market. Will continue to perform well on all metrics.
BUY
One of his core holdings. Likes what management has been doing. Got TD Waterhouse sorted out. Now have a proxy operating for them in the north east US giving them access to takeovers.
BUY
Financials have rallied because interest rates have stayed stable. The question is will bank stocks get cheaper when interst rates rise. Doesn't thinks so because they are still trading at reasonable valuations of 12/13 X earnings. You are still earning 3/4%.
TOP PICK
An extremely well run bank. Likes their strategy of looking into the US and making 2 excellent deals, TD Waterhouse and Ameritrade as well as the BankNorth which will do tuck-in acquisitions, step by step.
TOP PICK
Quietly, without a lot of fanfare has developed the best US strategy of all the Canadian banks. The Ameritrade transaction is going to be very positive. The BankNorth looks to be a very good incremental strategy to increase the exposure to retail in the US.
TOP PICK
On a longer term view, they have a great strategy in the US. Doing a great job in building their retail franchise.
PAST TOP PICK
(A Top Pick May 16/05. Up 8.5%.) Likes the US Hudson United acquisition by Bank North. Good strategy. Long term outlook is good. Would buy on weakness which will only happen on market weakness.
DON'T BUY
Canadian banks are performing much better than US banks, partially due to better dividend yields. Feels there are better places to be than in banks. He holds some, but only for their consitancy.
BUY
Likes the industry. There is the long term growth of financial services in asset management, insurance, retail banking and discount brokerage. Good management. The US BankNorth acquisition will be a good one. Over 3% dividend yield which is competitive with bonds.
TOP PICK
Likes what management is doing. Good value. Have a lot of capital, so can buy back shares, raise dividends, etc. Pleased with their TD Waterhouse deal in the US. Their execution with their US BankNorth will be critical, but will help the company grow over the long term.
TOP PICK
Great management. Have turned it around. Getting back to the retail side in Canada. In the US has a great venture with Ameritrade which will add considerable value overall. The BankNorth situation makes a lot of sense.
COMMENT
Between Bank of Nova Scotia (BNS-T), Royal (RY-T) and Toronto-Dominion (TD-T), TD would be his 1st choice. It has a better valuation and its ROE is quite high. Royal would be his next pick because the ROE growth is spectacular.
BUY ON WEAKNESS
No matter what happens to the brokerages mergers, etc, it is positive for TD Waterhouse and it is worth $3/4 a share. Would buy under $53.
DON'T BUY
In the aggregate, banks have done very little this year. They are all trading at 55 year valuation highs. There's no fair market valuation support for them to go much higher.
BUY
His favourites among the banks. Valuation is in the middle of the range. Starting to get some decent earnings leverage. Still has the US discount electronic brokerage business which has some corporate activity going on. Likes the moves management has made.
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