TSE:TD

Toronto-Dominion Bank (TD.TO)

158.03
+1.79 (1.15%)
as of Jun 4, 2026, 8:00:00 pm Market Open.
2224 watching
0
Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 64 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has shown a robust recovery following its money laundering scandal, yielding strong returns this year, with some reports indicating a rise as high as 72%. Despite this positive momentum, many analysts believe the stock is currently overvalued, trading at higher-than-normal P/E ratios—around 14 to 16 times—and above historical averages for Canadian banks. Experts express caution, suggesting trimming positions or waiting for a market pullback before initiating new purchases. The bank’s U.S. operations remain under regulatory scrutiny, limiting growth potential, which adds to the complex outlook for TD. While many hold on to their shares for long-term growth, there is a consensus on the need for careful evaluation of entry points due to high valuations.

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Consensus
Overvalued
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Valuation
Overvalued
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Similar
RY, Royal
BUY ON WEAKNESS
One of his favourite banks. They are expanding into the US where they are very competitive. TD Bank is well ahead of other banks south of the border. They're reasonably fully priced. He would wait for a weakness.
DON'T BUY
Showing signs of topping. Reason for concern. Stay away right now.
BUY
Cutting online trading commissions in the US. The negative impact on this news was overdone. TD is his favourite Canadian bank for its US exposure. But declining interest rates are a bigger issue. Let's see how the next earnings fare. Those who hung in during Q4-2018 were paid off this year, so hold on during the current pullback.
BUY ON WEAKNESS
He predicts interest rates will rise long-term which will benefit banks and lifecos. TD has a great chart and is close to highs. Buy on any short-term weakness.
BUY
Mid-$80s? His favorite of the Big 6. It has bigger US exposure, which would help if we go into recession.
DON'T BUY

He hasn't been into banks for a while, though he bought BNS and CM in the last three weeks. They earn money is this environment. TD ranked lower in his metrics, so he didn't buy it.

TOP PICK
Their largest bank holding. It has 50% exposure to the US. They are expected to raise the dividend again in November. He expects it move to around $82 per share. Yield 3.85% (Analysts’ price target is $80.25)
TOP PICK

Has a better growth rate than most banks in Canada but trades in line with valuation. They have US exposure, and it has the best balance sheet among the banks. If rate cuts are happening, banks can do well. (Analysts’ price target is $80.25)

BUY
The Canadian banks have had a great move in the last few weeks. The longer end of the interest curve has steepened in the last few weeks. This is his favorite bank at this time. They have the best franchise. Canadian banks still look relatively attractive even at these levels.
HOLD

Hold these companies. They can continue to increase the dividends. BMO-T is his least favourite of the big 5 right now. Their US business is not as stable as TD-T's. This is the one he has been trimming recently.

BUY

He likes the Canadian banks, especially this, BNS and RY. They pay a slightly lower dividend, but reinvest that, particularly in their US operations. Trades at 11x forward earnings. A great stock.

COMMENT
Why does volume trade spike in the last minutes of trading? The bulk of trading volume for most stocks actually focuses on the early start of the day, so this is unusual. As this in the index, there may be some index balancing that is going on. He is uncertain overall.
BUY
Still buying for new clients. Valuations are attractive. US operations growing nicely. Flexibility on expenditure spending. Earnings will grow, and so will the dividend.
BUY
It's a core holding and he will continue to buy it. An excellent franchise that will earn through the inverted yield curve. True, falling interest rates will pressure the banks, but those low interest rates lead to cheaper for home and car financing and so easier for indebted Canadians to carry that debt. The Canadian banks are a well-run oligopoly. The TD dividend will remain solid and grow, though at a slower rate during a downturn.
HOLD

He's long owned this, a great performer. Banks face headwinds, but TD trades at 10x earnings and pays a 4% yield. The banks can go lower in a weak economy, but the banks are long-term holds over 5-10 years. Stomach the volatility. You're paid to wait. Balance sheet is decent. TD (and RY) are investing in tech to keep up with the times.

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