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
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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
TOP PICK
Likes their strategy of focusing on the retail market. Best in class. Highest return on equity. With the Commerce Bancorp (CBH-N) acquisition it will make the bank really focus on its retail operations. Trades at 2.2X book and is the only bank that increased its dividend this year.
HOLD
(Market Call Minute.) The only bank that raised their dividend this quarter. Results were better than the other banks but to have a large and growing exposure to the northeast US.
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.
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