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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RY, Royal
HOLD
For years, has floated along a valuation level which is 1x his adjusted book, or $72.83. Balance sheet has been rising at steady 7-8% annually. So you're getting 11-12% regularly from TD if you're a long-term holder. Really good stock for someone who doesn't look at their portfolio often. Yield about 4%. Perfect price would be about $73.
COMMENT
High yield bonds during the financial crisis? He has no idea if these bonds will be redeemed by the bank.
BUY
Banks have suffered from interest rate issues and should be a core holding. TD is the best of the big 5 Canadian ones and has a growing US presence. There's little room for the stock price to drop, even as interest rates decline, because that decline is already priced in. History shows that the Canadian banks keep raising their dividends.
BUY
If he had to pick a Canadian bank it would be this one. Their US exposure is fairly attractive and they have been an outperformer. They did a really great job in the US. This would be his first choice in the Canadian banks.
PAST TOP PICK
(A Top Pick Dec 10/18, Up 14%) It was the only bank last quarter that released results and saw the stock go up. They had under-performed in the first quarter. This is one of his favourites of the Canadian banks.
BUY
His fundamental analyst likes this as well. The stock is consolidating and is poised to breakout to the upside again. The 20 year chart demonstrates an uptrend since late 2002.
DON'T BUY
They have done extremely well over the last few years. Their US expansion has gone beyond their expectations. He would look more at CM-T or BNS-T. Any of the big banks are relatively safe places to be. You could buy more of the higher yielding ones.
TOP PICK
The Canadian banks are relatively attractive on a valuation basis. It is trading at 11 times forward earnings. She does not see the Canadian economy going into recession and they will be able to continue growing earnings. Yield 3.9% (Analysts’ price target is $83.54)
WAIT
He would buy if it goes to around $71. He likes TD with its US holdings. He would wait to make an entry in this name.
TOP PICK
A quality solid business who just beat their earnings estimates this quarter. Trades around 11 times earnings. Yield 3.92% (Analysts’ price target is $83.32)
PARTIAL SELL
Why does TD get hit the hardest? Depends on the time period. YTD, TD had underperformed its US peer group. It's recovered a lot. He's trimmed back on all his banks. Valuation, earnings, and loan growth concerns. Still a very solid bank to have in your portfolio.
TOP PICK
This is a play on TD continuing to gain market share in the US. He sees the US economy as being better than the Canadian economy, however US economy is still not going gang buster. TD has been able to win market share from the other US banks. It is still early days as far as gobbling up market share. They may have the best retail platform in Canada and are taking these best practices to the US. This opportunity is somewhat immune to the performance of the US economy. Yield = 3.8% (Analysts’ price target is $83.32)
PAST TOP PICK
(A Top Pick May 25/18, Up 4%) His largest bank holding. They beat for the quarter. It will probably go into the $80s. Probably raise the dividend later in the year.
BUY
Don't let any single stock take up more than 7% of your portfolio, so don't be afraid to trim if a stock has grown like TD has. He has no worries about TD. Q1 was shaky, but should improve in Q2. Their exposure to the stronger US economy is good. He expects dividend increases and 305% earnings growth from all the Canadian banks this year. They are trading at a discount from their 20-year PE ratio, at 10x vs. 11.5x earnings.
HOLD
His biggest of all his bank holdings. The only knock is that it is hard to see what they can do next. The yield is a little lower relative to the peer group, because the stock price has done so well.
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