TSE:TD

Toronto-Dominion Bank (TD.TO)

175.27
+2.46 (1.42%)
as of Jul 15, 2026, 8:00:00 pm Market Open.
2223 watching
0
Investor Insights
star iconJul 15, 2026, 12:00 am

This summary was created by AI, based on 58 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has experienced substantial growth in recent years, particularly following recovery from previous money-laundering penalties. While the bank's wealth management and capital market segments remain strong and retail operations are relatively stable, many experts caution that current valuations are high, trading at approximately 16x PE against historical averages of around 13x PE. There is a sentiment that TD is overvalued by about 5%, with calls to trim positions or take profits after a significant run-up. Additionally, despite robust record earnings in recent quarters, concerns linger regarding growth potential in the U.S. due to imposed asset caps, leading some analysts to recommend a wait-and-see approach before re-entering the stock. Overall, investor sentiment is mixed—while some maintain long-term confidence in TD's dividend growth potential, others see risk in the high valuation and lack of future growth drivers.

consensus icon
Consensus
Overvalued
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Valuation
Overvalued
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Similar
RY
WEAK BUY
He owns this one. It has resistance at about $78, but has a good up trend in place. Not his first pick for Canadian banks, but a close second.
BUY
Has zigged when other banks have zagged. Under the gun recently, because American affiliate is involved in a fee-cutting price war. "Any day that ends in 'y'" is a good day to buy Canadian banks. 8% correction off all-time high is no cause for concern. He's buying with fresh money.
BUY
Considering the Ameritrade zero commission controversy TD is a buying opportunity and it has been unfairly punished by this issue. He's underweight Canadian banks, so he missed their big move in September. TD is one of his favourites in this sector.
PAST TOP PICK
(A Top Pick Nov 27/18, Up 5%) Trading commissions are going towards zero in the US and this is impacting them. He is still a big fan and likes the US exposure. The dividend on Canadian banks are very remarkable -- you have to own them. It was 1942 when the Canadian major banks cut a dividend.
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.

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