TSE:TD

Toronto-Dominion Bank (TD.TO)

157.74
-0.29 (0.18%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 5, 2026, 12:00 am

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

Toronto-Dominion Bank (TD) has demonstrated significant recovery over the past year following its past money laundering scandal. Although the bank has recorded strong earnings and benefits from a robust Canadian economy, many analysts consider its current valuation to be on the higher end, with price-to-earnings (PE) ratios reaching levels beyond historical norms. Despite the impressive stock performance, experts suggest that the valuation may now be too rich, prompting some to recommend trimming positions or waiting for a more favorable buying opportunity. While TD maintains a strong position within the Canadian banking sector, growth prospects remain constrained, particularly in the U.S. market due to regulatory issues. Overall, while the outlook for TD remains positive, caution is advised due to potentially high valuations and limited growth avenues.

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Consensus
Hold
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Valuation
Overvalued
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RY, RY
BUY
If Canadian consumer starts to deteriorate, it will hurt retail banking. Canada is a very resource oriented country and their loan book will become more difficult. However, they have very good tier 1 ratios and he would buy at these levels.
TOP PICK
6.1% yield. Strong, diversified portfolio. Have talked about being prepared for loan losses in a real economy for well over a year so they are well positioned.
TOP PICK
Capital Trust IV, June/19 @ 9.52%.
COMMENT
Not any worse off than any of the other banks.
PAST TOP PICK
(A Top Pick Dec 27/07. Down 30%.) Still likes. Quality management. Strong retail focus. One of the few banks that grew its dividends. Still a Buy.
DON'T BUY
Loath to put any money into financials right now. Thinks there are lots of bad loans coming the banks’ ways. Things are not going to look good for the banks for a while. Doesn't like their exposure in the US at this point in time.
TOP PICK
Good management. Mostly retail business. Recently raised over $1 billion and seemed to have set a bottom in on the stock. Growth will be slower than average for a while. Looking for an 8% to 10% return including dividends.
COMMENT
Thinks it is the best in class in the banking sector. Have a very vibrant retail space and the retail-banking arm is doing quite well. Commerce Bank acquisition is a fantastic franchise in the US and they have immunized as much risk as possible in their mortgage book. Bank is conservative, well run and well capitalized.
PAST TOP PICK
(A Top Pick July 16/07. Down 36%.) Sold his holdings when profitability started to deteriorate.
BUY
Cdn banks did relatively well to other global banks. Sold off because of concerns of their ratios and where growth is going to come from. This one has exposure to Northeast US as well as having US Ameritrade, which has affected some of their capital ratios. Good growth strategy. Trades at a discount multiple to the other banks.
BUY
All of the Canadian banks are screening very well right now. Market is looking for quality, good profits, strong sustainable dividend yield, clean balance sheets and interesting trading opportunities.
DON'T BUY
If you buy, put in a $35 stoploss. A lot of the banks are still just trying to make a base.
BUY
Good entry point if you are able to handle short-term volatility and you have a 3-year view.
BUY
One of his favourite banks. Last quarter was better than expected. Just improved its balance sheet with a $1.3 billion equity issue. Less exposed to structured products. If they don't have to keep their commitment to the BCE deal it is a very big positive. Strong capital base. Strong Canadian retail. Likes their US holdings.
TOP PICK
Valuation is 1.1 X book. 5.5% yield. Likes their strategy of being a good retail bank. Growing their franchise in the US. Thinks the US Commerce acquisition will work out even though they paid a little too much. Have stayed out of the riskier types of banking business.
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