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.

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Consensus
Hold
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Valuation
Overvalued
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Similar
RY, RY
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.
COMMENT
Believes they do have exposure, through their US Bank North, to sub prime mortgages. This could be affecting them in the short-term.
COMMENT
Likes the banks in general, but this one wouldn't rank as high as some of the others. Have more problems in the US than some of the others. Prefers Bank of Nova Scotia (BNS-T), which has more growth potential because of its Caribbean and Latin American exposure.
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