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 Monday, December 01, 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.

Axos Financial, Inc.’s Value Grade

Value Grade:

Axos Financial, Inc., together with its subsidiaries, operates as a consumer and business banking provider in the United States. The company operates through two segments, Banking Business and Securities Business. It offers deposits products, including consumer and business checking, savings, time deposit, and commercial and deposits. The company also provides residential single family, multifamily, and commercial mortgage loans; commercial real estate secured, commercial and industrial non-real estate, and auto and consumer loans. In addition, it offers a range of investment and wealth management services, such as disclosed clearing, recordkeeping, trade reporting, and reorganization assistance services, as well as margin loans and securities lending services. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in Las Vegas, 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.

Axos Financial, Inc. has a Value Score of 63, which is considered to be undervalued.

When you look at Axos Financial, Inc.’s price-to-sales ratio at 3.88 compared to the industry median at 3.06, this company has a higher price relative to revenue compared to its peers. This could make Axos Financial, Inc.’s stock less attractive for value investors.

Axos Financial, Inc.’s price-earnings ratio is 11.00 compared to the industry median at 12.00. This means it has a lower share price relative to earnings compared to its peers. This could make Axos Financial, 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. Axos Financial, Inc.’s shareholder yield is lower than its industry median ratio of 2.60%. 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. Axos Financial, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.07. This could make Axos Financial, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Axos Financial, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Axos Financial, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.70. This could make Axos Financial, Inc. more attractive because the lower P/FCF ratio indicates that Axos Financial, 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.

Bankwell Financial Group, Inc.’s Value Grade

Value Grade:

Bankwell Financial Group, Inc. operates as the bank holding company for Bankwell Bank that provides various banking services for individual and commercial customers. It offers various traditional depository products, including checking, savings, money market, and certificates of deposit. The company also provides first mortgage loans secured by one-to-four family owner occupied residential properties for personal use; home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties; loans secured by commercial real estate, multi-family dwellings, owner-occupied commercial real estate, and investor-owned one-to-four family dwellings; commercial construction loans for commercial development projects, including apartment buildings and condominiums, as well as office buildings, retail, and other income producing properties; land loans; commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners; loans to finance insurance premiums; overdraft lines of credit; and personal loans. It operates branches in New Canaan, Stamford, Fairfield, Westport, Darien, Norwalk, and Hamden, Connecticut. The company was formerly known as BNC Financial Group, Inc. and changed its name to Bankwell Financial Group, Inc. in September 2013. Bankwell Financial Group, Inc. was founded in 2002 and is headquartered in New Canaan, Connecticut.

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.

Bankwell Financial Group, Inc. has a Value Score of 63, which is considered to be undervalued.

Bankwell Financial Group, Inc.’s price-earnings ratio is 12.5 compared to the industry median at 12.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Bankwell Financial Group, Inc. less attractive for value investors.

Bankwell Financial Group, Inc.’s price-to-book ratio is lower than its peers. This could make Bankwell Financial Group, Inc. more attractive for value investors when compared to the industry median at 1.07.

You can read more about Bankwell Financial Group, 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.

Fidelity D & D Bancorp, Inc.’s Value Grade

Value Grade:

Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, club, interest-bearing and non-interest-bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. It also offers commercial and industrial, commercial real estate, consumer, and residential mortgage loans. In addition, the company provides government and healthcare banking services, cash management and merchant services, individual retirement accounts, and credit and debit cards; and alternative financial and insurance products with asset management services, as well as online banking, telephone banking, and digital wallet. The company was founded in 1902 and is headquartered in Dunmore, Pennsylvania.

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.

Fidelity D & D Bancorp, Inc. has a Value Score of 77, which is considered to be undervalued.

Fidelity D & D Bancorp, Inc.’s price-earnings ratio is 9.7 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Fidelity D & D Bancorp, Inc. more attractive for value investors.

Fidelity D & D Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Fidelity D & D Bancorp, Inc. fairly attractive for value investors when compared to the industry median at 1.07.

You can read more about Fidelity D & D 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.

Great Southern Bancorp, Inc.’s Value Grade

Value Grade:

Great Southern Bancorp, Inc. operates as a bank holding company for Great Southern Bank that provides a range of financial services in the United States. The company’s deposit products include regular savings accounts, checking accounts, money market accounts, fixed interest rate certificates with varying maturities, certificates of deposit, brokered certificates, and individual retirement accounts. Its loan portfolio comprises residential and commercial real estate loans, commercial business loans, construction loans, home improvement loans, and unsecured consumer loans, as well as secured consumer loans, such as automobile loans, boat loans, home equity loans, and loans secured by savings deposits. It also provides insurance and merchant banking services. Great Southern Bancorp, Inc. was founded in 1923 and is headquartered in Springfield, Missouri.

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.

Great Southern Bancorp, Inc. has a Value Score of 78, which is considered to be undervalued.

Great Southern Bancorp, Inc.’s price-earnings ratio is 10.0 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Great Southern Bancorp, Inc. more attractive for value investors.

Great Southern Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make Great Southern Bancorp, Inc. fairly attractive for value investors when compared to the industry median at 1.07.

You can read more about Great Southern 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.

Heritage Financial Corporation’s Value Grade

Value Grade:

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans. It also originates loans that are guaranteed by the U.S. Small Business Administration; and provides objective advice from trusted advisers. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.

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.

Heritage Financial Corporation has a Value Score of 71, which is considered to be undervalued.

Heritage Financial Corporation’s price-earnings ratio is 14.5 compared to the industry median at 12.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Heritage Financial Corporation less attractive for value investors.

Heritage Financial Corporation’s price-to-book ratio is higher than its peers. This could make Heritage Financial Corporation less attractive for value investors when compared to the industry median at 1.07.

You can read more about Heritage Financial Corporation’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.

LCNB Corp.’s Value Grade

Value Grade:

LCNB Corp. operates as the financial holding company for LCNB National Bank that provides banking services in the United States. The company offers checking and savings accounts; interest-bearing demand and money market deposit; and time certificates. It also provides commercial and industrial, commercial and residential real estate, agricultural, construction, various types of consumer, and small business administration loans; residential mortgage loans, such as loans for purchasing or refinancing personal residences, home equity lines of credit, and loans for commercial or consumer purposes secured by residential mortgages; and consumer lending comprising automobile, boat, home improvement, and personal loans. In addition, the company offers trust administration, estate settlement, and fiduciary services; and investment management of trusts, agency accounts, individual retirement accounts, and foundations/endowments. Further, it offers investment services and products, including financial needs analysis, mutual funds, securities trading, annuities, and life insurance; and security brokerage services. Additionally, the company provides safe deposit boxes, night depositories, cashier's checks, bank-by-mail, ATMs, cash and transaction services, debit cards, wire transfers, electronic funds transfer, utility bill collections, notary public service, cash management services, telephone banking, PC Internet banking, mobile banking, and other services for individuals and businesses. LCNB Corp. was founded in 1877 and is headquartered in Lebanon, Ohio.

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.

LCNB Corp. has a Value Score of 93, which is considered to be undervalued.

LCNB Corp.’s price-earnings ratio is 9.5 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes LCNB Corp. more attractive for value investors.

LCNB Corp.’s price-to-book ratio is higher than its peers. This could make LCNB Corp. less attractive for value investors when compared to the industry median at 1.07.

You can read more about LCNB Corp.’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.

Parke Bancorp, Inc.’s Value Grade

Value Grade:

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company accepts various deposit products, including checking, savings, money market, time, and other traditional deposit services, as well as individual retirement accounts and certificates of deposit. Its loan portfolio consists of residential, commercial real estate, construction, commercial and industry, and consumer loans. The company also offers debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

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.

Parke Bancorp, Inc. has a Value Score of 85, which is considered to be undervalued.

Parke Bancorp, Inc.’s price-earnings ratio is 8.1 compared to the industry median at 12.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Parke Bancorp, Inc. more attractive for value investors.

Parke Bancorp, Inc.’s price-to-book ratio is higher than its peers. This could make Parke Bancorp, Inc. less attractive for value investors when compared to the industry median at 1.07.

You can read more about Parke 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.

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.

• Axos Financial, Inc. stock has a Value Grade of B.
• Bankwell Financial Group, Inc. stock has a Value Grade of B.
• Fidelity D & D Bancorp, Inc. stock has a Value Grade of B.
• Great Southern Bancorp, Inc. stock has a Value Grade of B.
• Heritage Financial Corporation stock has a Value Grade of B.
• LCNB Corp. stock has a Value Grade of A.
• Parke Bancorp, Inc. stock has a Value Grade of A.

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.

• 7 Undervalued Banks Stocks for Monday, December 01
• Is Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Overvalued?
• Is Banco Santander, S.A. (SAN) Overvalued?
• Is Bank of America Corporation (BAC) Overvalued?

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