Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Banks industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Banks Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Banks industry for Tuesday, October 14, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Banks industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

BankUnited, Inc.’s Value Grade

Value Grade:

BankUnited, Inc. operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial loans, payments and cash management services. Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based lines of credit, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, subscription finance facilities, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans. The company offers loan servicing and deposit transaction processing systems, cloud-based data storage, electronic funds transfer transaction processing, cash management, online banking services, ERP systems and computer and networking infrastructure. It operates through a network of banking centers located in Florida counties and the New York metropolitan area, as well as Dallas, Texas. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

BankUnited, Inc. has a Value Score of 79, which is considered to be undervalued.

When you look at BankUnited, Inc.’s price-to-sales ratio at 2.85 compared to the industry median at 3.02, this company has a lower price relative to revenue compared to its peers. This could make BankUnited, Inc.’s stock more attractive for value investors.

BankUnited, Inc.’s price-earnings ratio is 11.30 compared to the industry median at 11.90. This means it has a lower share price relative to earnings compared to its peers. This could make BankUnited, Inc. more attractive for value investors.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. BankUnited, Inc.’s shareholder yield is lower than its industry median ratio of 2.65%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. BankUnited, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.06. This could make BankUnited, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at BankUnited, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BankUnited, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 15.10. This could make BankUnited, Inc. more attractive because the lower P/FCF ratio indicates that BankUnited, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Sierra Bancorp’s Value Grade

Value Grade:

Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking products and services to individuals and businesses in California. It accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. The company’s loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. It also offers automated teller machines; electronic point-of-sale payment alternatives; mobile check deposits; online lending solutions; online and automated telephone banking services; and remote deposit capture and payroll services for business customers. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Sierra Bancorp has a Value Score of 89, which is considered to be undervalued.

Sierra Bancorp’s price-earnings ratio is 9.6 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Sierra Bancorp more attractive for value investors.

Sierra Bancorp’s price-to-book ratio is lower than its peers. This could make Sierra Bancorp fairly attractive for value investors when compared to the industry median at 1.06.

You can read more about Sierra Bancorp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

East West Bancorp, Inc.’s Value Grade

Value Grade:

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States. The company operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. It accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. The company provides various loan products, such as mortgage and home equity, commercial and residential real estate, construction, trade, letters of credit, commercial business, affordable housing, asset-based, asset-backed, project, loan syndication, and equipment loans, as well as working capital lines of credit; and financing services for clients to facilitate their business transactions between the United States and Asia. It also provides foreign exchange, treasury management, wealth management, and interest rate and commodity risk hedging services; and mobile and online banking services. The company was founded in 1973 and is headquartered in Pasadena, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

East West Bancorp, Inc. has a Value Score of 62, which is considered to be undervalued.

East West Bancorp, Inc.’s price-earnings ratio is 11.8 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes East West Bancorp, Inc. more attractive for value investors.

East West Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make East West Bancorp, Inc. more attractive for value investors when compared to the industry median at 1.06.

You can read more about East West Bancorp, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

First Community Bankshares, Inc.’s Value Grade

Value Grade:

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services. It serves individuals and businesses across various industries, such as education, government, and health services; retail trade; construction; manufacturing; tourism; coal mining and gas extraction; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

First Community Bankshares, Inc. has a Value Score of 70, which is considered to be undervalued.

First Community Bankshares, Inc.’s price-earnings ratio is 12.1 compared to the industry median at 11.9. This means that it has a higher price relative to its earnings compared to its peers. This makes First Community Bankshares, Inc. less attractive for value investors.

First Community Bankshares, Inc.’s price-to-book ratio is lower than its peers. This could make First Community Bankshares, Inc. more attractive for value investors when compared to the industry median at 1.06.

You can read more about First Community Bankshares, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Home Bancorp, Inc.’s Value Grade

Value Grade:

Home Bancorp, Inc. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana, Mississippi, and Texas. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products comprising one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. Further, it invests in securities, as well as offers credit cards and online banking services. The company was founded in 1908 and is headquartered in Lafayette, Louisiana.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Home Bancorp, Inc. has a Value Score of 81, which is considered to be undervalued.

Home Bancorp, Inc.’s price-earnings ratio is 10.1 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Home Bancorp, Inc. more attractive for value investors.

Home Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Home Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about Home Bancorp, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Plumas Bancorp’s Value Grade

Value Grade:

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses and individuals in California, Nevada, and Oregon. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, and retirement accounts, and time and remote deposits. Its loan portfolio comprises term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides telephone and mobile banking, internet banking with bill-pay options, cashier’s check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Plumas Bancorp has a Value Score of 74, which is considered to be undervalued.

Plumas Bancorp’s price-earnings ratio is 8.6 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Plumas Bancorp more attractive for value investors.

Plumas Bancorp’s price-to-book ratio is lower than its peers. This could make Plumas Bancorp more attractive for value investors when compared to the industry median at 1.06.

You can read more about Plumas Bancorp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Shore Bancshares, Inc.’s Value Grade

Value Grade:

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank, N.A. that provides various consumer and commercial banking products and services to individuals, businesses, and other organizations in the United States. The company offers checking, savings, overnight investment sweep, and money market accounts; and regular and IRA certificates of deposit, as well as certificate of deposit account registry service programs and cash management services. It also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers, including home equity, automobile, installment, home improvement, and personal lines of credit, as well as other consumer financing products. In addition, the company offers trust, wealth management, and financial planning services; treasury management services, such as merchant card processing, remote deposit capture, and ACH origination, as well as telephone, mobile, and Internet banking services; safe deposit boxes; debit and credit cards; and automatic teller machine services. Shore Bancshares, Inc. was founded in 1876 and is based in Easton, Maryland.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Shore Bancshares, Inc. has a Value Score of 78, which is considered to be undervalued.

Shore Bancshares, Inc.’s price-earnings ratio is 9.8 compared to the industry median at 11.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Shore Bancshares, Inc. more attractive for value investors.

Shore Bancshares, Inc.’s price-to-book ratio is higher than its peers. This could make Shore Bancshares, Inc. less attractive for value investors when compared to the industry median at 1.06.

You can read more about Shore Bancshares, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Banks Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Banks stocks as well as other industrys.

Choosing Which of the 7 Best Banks Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• BankUnited, Inc. stock has a Value Grade of B.
• Sierra Bancorp stock has a Value Grade of A.
• East West Bancorp, Inc. stock has a Value Grade of B.
• First Community Bankshares, Inc. stock has a Value Grade of B.
• Home Bancorp, Inc. stock has a Value Grade of A.
• Plumas Bancorp stock has a Value Grade of B.
• Shore Bancshares, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Banks industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Banks Stocks

Want to learn more about Banks stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Banks Stocks for Tuesday, October 14
• Does Central Bancompany, Inc. (CBCY) Have Momentum?
• Is Bank of America Corporation (BAC) Overvalued?
• Is Central Bancompany, Inc. (CBCY) a Good Dividend Stock?

AAII Disclaimer

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