TSE:TD

Toronto-Dominion Bank (TD.TO)

170.90
+1.61 (0.95%)
as of Jun 25, 2026, 8:00:00 pm Market Open.
2225 watching
0
Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 61 opinions in the last 12 months.

Toronto-Dominion Bank (TD) has seen a significant recovery from its recent challenges, notably the money laundering scandal, with many experts noting its potential for growth in the long term, especially within the Canadian economy. However, the consensus among analysts indicates that the stock is currently trading at historically high P/E ratios, raising concerns about its valuation and suggesting that it may be overvalued by approximately 5% or more compared to past norms. While some believe TD's impressive earnings growth and its strategic positioning in the U.S. market could still lead to positive outcomes, there are warnings about the high valuations and the possibility of a market correction. Analysts seem divided on whether to hold or to trim positions at this point, with a predominant view favoring a cautious approach. Overall, TD remains a strong brand within the Canadian banking sector, but its recent performance raises questions about future growth sustainability amid high valuations.

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Consensus
Overvalued
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Valuation
Overvalued
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Similar
BMO
WAIT
Has backed off the bank stocks. It will be a more difficult market into 2020. But if you were going to buy a bank, this would be one of his first picks. One of the best managed, and successfully making major inroads into the US. Wait for a market correction to buy. Yield is 3.9%.
TOP PICK
Trades at 10.4 x earnings and poised to continue to outperform the TSX. (Analysts’ price target is $83.29)
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.
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