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
HOLD
Has a growth platform focused in the US. As a result, it has exposure to the Cdn$ and perhaps to some of the situations that are impacting the US economy. Long-term, a very good investment but short term would prefer others.
BUY
Adding to new accounts. Banks have rolled over recently, probably due to higher interest rates. He looks for an 8%-10% average capital gain plus the yield.
BUY
If he were adding a bank he would add a bank that has exposer outside of Canada. Would prefer Bank of Nova Scotia.
WATCH
Hasn't done as well as some of the other banks, mainly because of its US subsidiary Bank North. Now going to be run by TD. Canadian operations have been fantastic. Should see signs towards the end of the year of their progress.
PAST TOP PICK
(A Top Pick May 31/06. Up 16.1%.) Still has the same attributes and he still likes. His favourite bank stock.
HOLD
Seasonal period from end of September until the end of May. He says the chart is “beautiful”, only concern is the strength relative to the rest of the market is going negative. This is with banks in general.
BUY
Banks have been underperforming. Like the TD (prefer Commerce, rates Commerce as #1, TD as #2).
BUY
Has executed very well. One of the best retail franchises. Has spent a lot of time and energy on their wealth management business. US strategy makes a lot of sense to grow organically.
DON'T BUY
Have been adding to their US side of the business. Some of the US numbers have been weak. Expects only modest growth from Canadian banks.
HOLD
Canadian banks are not excessively cheap but you can expect an 8% to 12% return, which is pretty good. Although they've had some problems with the US franchise, this is getting sorted out.
TOP PICK
(A Top Pick May 31/06. UP 15.6%.) Their US TD Bank North is taking a write-off, about a 4%-5% restructuring of staffing. Growth plus dividend gives about a 15% return.
COMMENT
A little concerned that profit growth on banks will slow down this year. Loan losses are probably at cycle lows. If the economy slows down, these may start to rise. Likes this one better than most.
BUY
Likes this bank. Canadian banks have no US sub-prime mortgage exposure. There is now a big valuation spread between the two. Could be at a point where Canadian banks may be sold in order to buy US ones.
BUY
Banking sector has had a great run in the last 3 years. Expects this year will be a dividend plus 3%-4% year giving a 7% to 8% return. This one has a slightly better retail branch operation.
COMMENT
Its US subsidiary, Bank North, will benefit from the conservative nature of its Canadian parent’s lending practices and shouldn't be hit as hard by sub-prime and prime mortgage problems.
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