Toronto-Dominion Bank Could Soar If These 3 Things Go Right

By Reuben Gregg Brewer – Feb 20, 2026 at 4:00AM ESTKey PointsToronto-Dominion Bank came under scrutiny from U.S. regulators for weak internal controls related to money laundering.The Canadian bank is still under an asset cap in the U.S. market. We’re bullish on these 10 stocks ›NYSE: TDToronto-Dominion BankMarket Cap$162BToday's Changeangle-down(-0.35%) $0.34Current Price$95.80Price as of February 19, 2026 at 3:58 PM ETWall Street has a very short memory, but TD Bank could start to grow more quickly if these three things go right.Toronto-Dominion Bank's (TD 0.35%) shares have risen more than 60% during the past year. Given that, you might assume that the Canadian banking giant is hitting on all cylinders today. However, that's just not the case. And these three things could put its business into a higher gear if they go right. 1. TD Bank needs to fix its U.S. business The big problem for TD Bank, as this financial giant is commonly known, is its U.S. division. This business segment was expected to be the company's growth driver, given that its Canadian operations are largely mature. Only the company ran afoul of U.S. regulations around money laundering controls, leading to the U.S. division being placed under an asset cap by U.S. regulators in late 2024. Image source: Getty Images. The effective impact is that TD Bank's U.S. business can't grow until regulators are comfortable that the internal control issues have been resolved. TD Bank has been spending on technology and personnel to prove that the money laundering issue is behind it. Getting that work done is the big key. 2. TD Bank needs to get regulators to back off Only after TD Bank is comfortable that it has resolved the internal control issue will it likely ask for regulators to reconsider the asset cap. It would be far worse to ask and have the regulators decide that there are still deficiencies. Still, the second big step is to have the asset cap removed. That alone will likely lead to increased investor enthusiasm for the stock, since it opens up a vital growth engine TD Bank can't currently use. ExpandNYSE: TDToronto-Dominion BankToday's Change(-0.35%) $-0.34Current Price$95.80Key Data PointsMarket Cap$162BDay's Range$95.44 - $96.1852wk Range$54.87 - $99.04Volume108KAvg Vol2.4MDividend Yield3.18% 3. TD Bank needs to find an acquisition After TD Bank improves its controls enough to remove the asset cap, it still has to find another U.S. bank to buy to fulfill its ambitions of expanding in the U.S.. The internal control issue actually forced the company to cancel an acquisition. Finding a new deal probably won't happen overnight, given the complexity of financial companies and the importance of finding a bank that fits with TD Bank's conservative business culture. However, when a merger is finally announced, it will signal that TD Bank is back in the growth game. Nothing is going to happen quickly The unfortunate part of all of this is that TD Bank's story isn't going to change overnight. It takes time to improve internal controls and for regulators to assess those controls. And it takes time to find appropriate acquisition candidates. Still, if you are watching TD Bank, these three things need to go right before it can truly hit on all cylinders again.Read NextSep 23, 2025 •By Reuben Gregg Brewer2 of the Best Bank Stocks Investors Can Buy TodayAug 5, 2025 •By Lawrence Rothman, CFAIf You'd Invested $1,000 in TD 5 Years Ago, Here's How Much You'd Have TodayJul 13, 2025 •By Patrick Sanders3 No-Brainer Dividend Stocks to Buy With $200 Right NowMay 22, 2025 •By Eric VolkmanWhy Toronto-Dominion Bank Stock Trounced the Market TodayMay 1, 2025 •By Reuben Gregg Brewer3 Brilliant High-Yield Stocks to Buy Now and Hold for the Long TermFeb 13, 2025 •By Reuben Gregg BrewerThe Best High-Yield Bank Stock to Invest $500 in Right NowAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedToronto-Dominion BankNYSE: TD$95.80 (0.35%) $0.34*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.