TSE:TD
Toronto-Dominion Bank (TD.TO)
170.57
+1.28 (0.76%)
as of Jun 25, 2026, 3:17:40 pm Market Open.
2225 watching
Financials 
Technical Analysis 0
Investor Insights
Jun 25, 2026, 12:00 amThis summary was created by AI, based on 61 opinions in the last 12 months.
The reviews for Toronto-Dominion Bank (TD) highlight a cautious but generally optimistic outlook on the stock's performance. Many experts suggest that while TD has made significant recovery after the money laundering penalty, it is currently trading at a high price-to-earnings (PE) ratio compared to historical norms, prompting some to recommend trimming positions or taking profits. The bank's valuation, hovering around 14x to over 16x PE, has raised concerns of overvaluation, especially with future growth potential in the U.S. still clouded by regulatory issues. However, the majority of analysts maintain that TD is a strong long-term investment, appreciating its solid position in Canada and improving fundamentals. They also expect that TD's efforts in wealth management and capital markets will drive future earnings growth despite short-term challenges.
Consensus
Trim
Valuation
Overvalued
Similar
RY
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Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly Following recently reported earnings that beat expectations, TD is a TOP PICK. As concerns swirled about the Canadian banks, TD beat earnings expectations by over 8% as EPS grew 56% over the year. Loan loss provisions are declining as volume of loans is increasing. It trades at 12x earnings compared to peers at 13x and is valued just under 2x book value. It pays a good dividend (which was increased by 12%), backed by a payout ratio under 45% of cash flow. We would buy this with a stop loss at $89, looking to achieve $126 - upside potential over 32%. Yield 3.35% (Analysts’ price target is $125.73)
banks
BUY
In a non-registered, RRSP or TFSA over 10 years? It depends on your situation and the size of each account. Start with the TFSA--the more you grow tax-free, the more it benefits you. Remember, you can't claim a loss in a TFSA. TD is his largest bank holding and the best bank.
Ryan BushellOwned
banks
HOLD
He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.
Bryden TeichOwned
banks
BUY
Don't be afraid of a company that's making a steady advance, especially if the sector they come from has a tailwind. Financial sector is currently one of the best performers currently. Good conditions such as rising bond yields and improving economics. Added fuel of dividend increases will be very attractive. TD made this same high in May, has been consolidating, and this could kick off a new leg in the rally. He prefers NA and BMO, some US banks, and look at HCG.
banks
Premium contentTOP PICK
We've chosen TD from the group, based on the historical pattern of the last one now, will later be first. TD has underperformed its peers so far in 2021. Through the first three calendar quarters, TD has gained 17%, while top dog, National Bank, has run twice as far. Actually, this isn't completely accurate; Bank of Nova Scotia has fared slightly worse than TD, but BNS carries more risk because a substantial part of its business is in Latin America which is not exactly known for growth or dependable performance.
PAST TOP PICK
(A Top Pick Sep 14/20, Up 39%) Great franchise in Canada and the US. Share buybacks and dividend increases are coming. Over-reserves can move back into earnings. Net interest margins are tougher with the volatility. Long-term, a powerful brand. Sale of Ameritrade gives them capital to deploy.
Paul Harris, CFAOwned
banks
HOLD
It's lagged a little. It had a severe premium valuation. Like the other banks, they did well with reserve releases. ROE is decent. TD has spent a lot to expand in the U.S., so there's a lag in profitability--they are doing well in the U.S. It's reasonably priced now, in the middle of the bank pack. It pays around 3.8%. He prefers BNS, RY and Commerce. He can't all the banks all the time. Not his first choice, but if he already owned TD, he'd hang onto it.
banks
TOP PICK
She likes the banks, releasing provisions put on last year. When the banks will be allowed to raise dividends and buyback shares, TD will likely hike its dividend by double digits. TD has the strongest capital position among the big banks. TD trades at a premium valuation to the group. They have a strong retail presence in Canada and the U.S. and so will benefit as those economies recover. They have a position in Schwab, a nice source of capital. (Analysts’ price target is $92.85)
Christine PooleOwned
banks
BUY
Why is it underperforming its peers, like RY and BMO? He cut his teeth following the banks since 1971. The banks may be a homogenous group, but there's always a cheap stock and an outperformer, and the banks rotate these positions. So, pick the laggard. He isn't worried that TD is lagging; don't worry about these short-term things.
banks
HOLD
If you already own this, you're very well positioned. The banks forward PE is 11x is fine. They can't raise dividends or buyback shares until regulators allow them, which is likely to happen. US banks pay far lower dividends, but buyback more shares, but it's the reverse with Canadian banks. Expect returns for TD in the future: 4% on the dividend, 1-2% on buybacks + topline growth.
Chris BlumasOwned
banks
BUY
He lightened up on the banks last quarter. When stocks stop rising on good news, he gets concerned. Canadian banks had quite a run. Lower yields were a headwind. Likes the US assets. Overcapitalized. Eventually will raise dividends, buy back shares, do acquisitions. He's adding. Valuations are at the higher range, buy you could do a lot worse than owning the banks.
John ZechnerOwned
banks
PAST TOP PICK
(A Top Pick Jul 07/20, Up 51%) Valuation premium and analyst fan base has waned a bit. Due to US expansion, plus US net interest margin sensitivity is high. Continues to own and buy.
Brian MaddenOwned
banks
TOP PICK
Canada's second largest bank. Increasingly, a force to be reckoned with in US banking. War chest of excess capital, which they've signalled they'll use to make acquisitions. Good leadership changes. 14% ROE. Worst of net interest margin pressures is over, capital markets firing on all cylinders, likes the business mix. Good value here. Clear line of sight to double digit total return over a cycle. Yield is 3.36%. (Analysts’ price target is $93.14)
Brian MaddenOwned
banks
TOP PICK
Strongest capital position of all the big 6 banks. Their interest in Schwab can be monetized. Want to expand their already large US presence. Loan growth should pick up. Will benefit when regulatory restrictions are lifted. Should continue to increase dividends. Yield is 3.61%. (Analysts’ price target is $93.28)
Christine PooleOwned
banks
BUY
Benefits from a rising interest rate environment. With its footprint in the US, influenced by the USD. Very well capitalized, solidly profitable, not that expensive. In great parts of the US; bought its assets really well. Cream of the crop of retail banks in Canada, and less sensitive to capital markets.
banks
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