TSE:TD

Toronto-Dominion Bank (TD.TO)

157.74
-0.29 (0.18%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
2224 watching
0
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.

consensus icon
Consensus
Hold
valuation icon
Valuation
Overvalued
review icon
Similar
RY, RY
DON'T BUY
If he had to pick a bank, this is probably the one he would pick because of their strong focus on retail banking. The problem is, this group is out of favour and will continue to be so.
COMMENT
2% upside on his model price.
TOP PICK
Very good opportunity at this point. Very strong management team and has the largest retail exposure, which should continue to do well.
BUY
Interest rates are coming way, way down and banks do well in a declining interest rate environment. They have stated they are free of any sub prime entanglements. They have also indicated that their acquisition they are buying in the US is also free. Good dividend.
DON'T BUY
In the process of buying Commerce Bank, which they announced near the top of the banking cycle. Valuations of US banks have dropped dramatically but he doesn't see any price change in this deal. TD North has not been performing very well either.
COMMENT
Chart shows how volatile banks have become recently. If you really want to own a bank for the long-term, this is as good as you are going to find. He is avoiding banks at this time.
BUY
This has been one of the better banks to get through all these problems. It didn't have the asset-backed commercial paper. However, 10% of their assets are from TD Bank North and another 10% from TD Ameritrade in the US. Solid balance sheet and trading around 10X earnings.
WATCH
Canadian bank stocks have 2 periods of seasonal strength. Next one starts at the end of January and goes through until the end of May. Toronto Dominion (TD-T) or Royal Bank (RY-T) would be his favourites. This one is at its support level. Consider buying closer to February. Also keep an eye on the sector.
TOP PICK
Likes banks generally. Good earnings power. Made some very shrewd decisions. Ratio of bank yields to Canadian bond yields is at a five standard deviation from the norm. An opportunity to buy a great bank at a great price.
COMMENT
Banks were hit today on news that Citigroup (C-N) was going to take a $18 billion write-off. They completed 2 large US acquisitions in 2007 and nobody really knows what they bought. This is the reason for the selloff.
PAST TOP PICK
(A Top Pick March 6/07. Up 2.6%.) Still his favourite bank. Very little CDO/subprime US exposure. The Commerce acquisition in the US will be pretty well cleaned up by the time they take ownership. Still a Buy under $70.
BUY
In a fantastic position during the subprime issue as they had no exposure. The only negative for them is that they bought Commerce Bank in the US and own Bank North so there is execution risk. Have a fantastic retail network. Strong capital ratios. Also have 49% ownership in TD Waterhouse and Ameritrade.
TOP PICK
Avoided a lot of the banking problems. Good retail bankers. Very disciplined management.
COMMENT
Likes their stand on refusing to bail out others who created the mess. Have some other problems in that they made some big acquisitions on US banks. Trading at 12X current earnings and 11.5X forward. This is not his favourite bank.
BUY
This would be his Top Pick of the Canadian banks. While he thought the Commerce Bancorp acquisition was a little bit pricey, it is an excellent fit for them. This is probably the best consumer bank out there.
Showing 1,426 to 1,440 of 2,214 entries