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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Similar
BMO
BUY
Banks are the cheapest in the financial area based on 12.2 to 12.8 X price earnings.
TOP PICK
They've finalized their partial purchase of Bank North. You're getting primarily a retail bank, with not much downside. With the 3% dividend and a price target of $55 gives a 15% return.
DON'T BUY
What happens in the US ultimately works its way into the Canadian market. US banks are having a very difficult time and are down about 7% year to date. Canadian banks have had good yield support, but they really are not making a lot of headway. They are basically trading sideways.
DON'T BUY
Bank stocks are starting to top which is not surprising. The bull market started in 2002 and we are 2 1/2 years into the bull market. That's usually the time bank stocks start to move down.
DON'T BUY
Doesn't like the banks. They have just come off 52 week highs. Historically they always give you a chance to buy at some point and he is going to wait with his hands open at prices he is willing to pay. Wait until they get ugly.
DON'T BUY
Not looking for a lot of great returns on banks over the next year or so. They may underperform the market in general. Earnings growth has slowed. Between Toronto Dominion and Bank of Nova Scotia (BNS-T), TD would be his first choice. Has been restructured into a better retail environment. Bank North acquisition has given them a little bit more growth.
BUY
Feels it will peddle along around this level. Slow, conservative, shouldn't put a foot wrong. Might do OK in the US. A good core holding for a portfolio.
BUY
Using P/E ratios, banks are among the cheapest in the financials. Bank of Montreal (BMO-T) and Bank of Nova Scotia (BNS-T) are the cheapest followed by Toronto Dominion (TD-T) then by Royal (RY-T) and CIBC (CM-T). His favourite is Toronto Dominion. Michael Sprung, of his firm, likes Bank of Nova Scotia and CIBC.
TOP PICK
Model price of $61 which is a 22% differential. Earnings were fantastic. Likes the balance sheet. Cheap.
BUY
Their favourite bankd followed by Royal (RY-T) Has made a lot of good strategic moves with their amalgamation of Canada Trust and acquisition of Bank North in the US.
HOLD
If interest rates start moving up, it won't be a great performer. 3.75% yield. One year target would probably be $55 in a decent market plus the yield would be a 13% return. Downside is probably into the mid $40's.
PAST TOP PICK
(A Top Pick Jan24/05. Up 1%.) They are doing all the right things. Will continue to do well and give a great rate of return.
TOP PICK
His model price is $62.29 which is a 25/26% discount. A screaming buy. Good name. 3% dividend yield. Good conservative bank. Discounted to the other banks.
BUY
In the long run Canadian banks outperform almost any other industry.
BUY
Had a pull back because of the Bank North deal. US residents selling their TD shares they received put short term pressure on the stock.
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