TSE:TD

Toronto-Dominion Bank (TD.TO)

158.24
+0.21 (0.13%)
as of Jun 5, 2026, 2:29:36 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
valuation icon
Valuation
Overvalued
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RY, RY
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.
PAST TOP PICK
(A Top Pick Mar 22/05. Up 14%.) The 2nd highest rated bank in his data base.
PAST TOP PICK
(A Top Pick Dec 30/04. Up 6.3%.) Still a favourite bank. The BankNorth is a transforming deal. Looks like they will sell TD Waterhouse and get a good price for it.
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