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TSE:TD

Toronto-Dominion Bank (TD.TO)

167.84
+1.97 (1.19%)
as of Aug 27, 2026, 8:00:00 pm Market Open.
2222 watching
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Investor Insights
star iconAug 27, 2026, 12:00 am

This summary was created by AI, based on 52 opinions in the last 12 months.

Experts share a mixed outlook on Toronto-Dominion Bank (TD), noting its recent recovery from a money-laundering scandal and strong performance in capital markets and wealth management. However, many express concerns about the stock's current valuation, which they deem high compared to historical averages. While TD has benefited from a favorable economic environment and regulatory support, several experts recommend trimming positions to capture profits or reallocating into more undervalued opportunities. Despite some strong earnings announcements indicating solid fundamentals, there is caution about the growth potential due to ongoing compliance issues and the impact of interest rates on the Canadian economy. Overall, TD is viewed as a resilient player in the Canadian banking sector, yet the optimism is tempered by valuation concerns.

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Consensus
Cautious
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Valuation
Overvalued
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RY
PAST TOP PICK
(A Top Pick Oct 28/19, Down 2%) It's been only three months since he picked this. It remains his bank of choice in North America. Their US retail segment is their strongest (vs. their Canadian retail and Canadian corporate). So, they have three horses in the race. The best Canadian bank; you need to hold just one.
HOLD
Dividend is compelling. Stuck in a trading range. Long-term growth goal is a high single-digit pace. They didn't last year. Tepid demand for loans. Pressure on provision for credit losses. These pressures will remain for 2020. Own it with a multi-year time frame. He doesn't want to be out of this name when the next leg up starts. Banks earn high returns for investors, in a sector that outperforms the market. Yield is 4%.
HOLD
Of all the Canadian banks this was the laggard, based on price return. It is priced a little on the rich side. The yield is about 4%, making it attractive. He does not hold a large position, but would suggest others at these valuation levels (both trading on book value and yield).
COMMENT

CDN Bank shares or ETF? As a porfolio manager, he prefers to use his expertise to pick individual stocks. An ETF gives you the group and no ability to outperform. Canadian banks are favorable over US counterparts he thinks, including the higher yield. He likes BNS and RY. He does not hold much in TD at the moment. He holds about 20% of his portfolio in banks.

TOP PICK
True, the Canadian banks haven't done well, but TD trades at 1.6x book, pays a 4% dividend yield, and trades at 10.6x earnings. There won't be much topline growth, but more bottom line due to cost savings. Volatility over loan losses should calm. TD sold off TD Ameritrade. They can expand in the US even more, already a great franchise there, and increase returns. The bad news is already in the bank stocks. (Analysts’ price target is $79.00)
PAST TOP PICK
(A Top Pick Jan 15/19, Up 9%) It was a bit disappointing in a year when the market did over 20%. It under-performed and is due for a reversion. The yield will be at the 4.5% area after the upcoming dividend increase. There is potential for them to do well in this environment.
TOP PICK
It had a rare miss in Q4 on earnings. He has the most confidence of any Canadian bank that they will be able to recover. Over 50% of their business is in the US retail space. He expects a dividend increase as early as February. He thinks it should be trading about $80 next year. Yield 4.05% (Analysts’ price target is $79.00)
HOLD
It has been the best of the Canadian banks over 20 years. Banks are faced with the fact that they make money on the spread between lending and borrowing. That has been squeezed substantially. The entire banking industry has been facing that globally. The Canadian banks are incredibly strong but he thinks they will under-perform in the next 12 months. If you have held it for a number of years there is no reason to sell it.
PARTIAL BUY
Last quarter's bank earnings were weak. Loan loss provisions are starting to rise and are not offset by loans and mortgages. That's across the bank sector. The BOC is stuck: it can't raise or cut rates. TD is up 8% this year and trading at 11x earnings. Yields near 4% as it continues to grow at 10%. Buy a half position only, then see what happens in the next quarter.
BUY
He likes the Canadian banks and TD is one of the best. You could buy any of the Canadian banks. Declining interest rates has hurt the banks but the interest rates have very little downside from here.
BUY ON WEAKNESS
Major support is at $70, so buy at this level. He predicts a market pullback in January. Canadian banks are historically strong, and TD has a long-term uptrend. TD may fall below $70 to $65, but $70 is a buy.
PAST TOP PICK
(A Top Pick Jan 11/19, Up 11%) He’s neutral on the banks at the moment. He wants to see how the economy sets out. Retail sales and unemployment numbers weren’t good. He would rather buy Scotia, mainly because they are outside of Canada. He would wait on the banks.
BUY
A dividend-paying stock Strong U.S. presence and pays a 4.1% dividend yield. The Canadian banks just reported a rough quarter; there are worries over high consumer debt, shrinking margins and bad loans. But long run they great ROEs. TD trades at 10.6x earnings and an ROE around 14x. Banks are good to own long term and can weather these issues.
COMMENT

BNS or TD? He prefers BNS over TD. TD is more of a play on the US and he wants a bank with the least exposure in Canada.

BUY
Better than Royal Bank? Recent bank weakness is due to Canadian debt levels and a tick-up in non-performing loans. But these banks are very well-capitalized and Canada is a growing place due to immigration. He likes the banks as a group, and investors will earn a decent return as long as they can deal with an earnings downdraft if the economy pulls back in the future.
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