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 Financial Services 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 Financial Services 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 Financial Services 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 Financial Services industry for Tuesday, March 24, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Financial Services 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.

Acacia Research Corporation’s Value Grade

Value Grade:

Acacia Research Corporation operates as an acquirer and operator of businesses across industrial, energy, and technology sectors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It operates through four segments: Intellectual Property Operations, Industrial Operations, Energy Operations, and Manufacturing Operations. The company is involved in investing in IP; and licensing and enforcement of patented technologies. It also designs and manufactures printers, including hardware and embedded software, as well as consumable products, such as inked ribbons for various industrial printing applications. In addition, the company acquires, explores, develops, and produces oil and natural gas resources located in Texas and Oklahoma. Further, it designs and manufactures purchase brochure, folder, and applications display holders; plastic injection-molded office supply, as well as arts, crafts, and education products; plastic and aluminum air venting and air control products; extruded vinyl chair mats; safety reflectors for bicycles; and emergency warning triangles, mud flaps, and splash guards for the heavy duty truck market and transportation industry. Acacia Research Corporation was incorporated in 1993 and is headquartered in New York, New York.

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.

Acacia Research Corporation has a Value Score of 82, which is considered to be undervalued.

When you look at Acacia Research Corporation’s price-to-sales ratio at 1.67 compared to the industry median at 1.98, this company has a lower price relative to revenue compared to its peers. This could make Acacia Research Corporation’s stock more attractive for value investors.

Acacia Research Corporation’s price-earnings ratio is 22.30 compared to the industry median at 15.05. This means it has a higher share price relative to earnings compared to its peers. This could make Acacia Research Corporation less attractive for value investors.

Now, let’s assess Acacia Research Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 4.6, when compared to the industry median of 11.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

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. Acacia Research Corporation’s shareholder yield is higher than its industry median ratio of 0.10%. 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. Acacia Research Corporation’s price-to-book ratio is lower than its industry median ratio of 1.23. This could make Acacia Research Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Acacia Research Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Acacia Research Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.50. This could make Acacia Research Corporation more attractive because the lower P/FCF ratio indicates that Acacia Research Corporation 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.

Equitable Holdings, Inc.’s Value Grade

Value Grade:

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Asset Management, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement variable annuity products, including structured capital strategies, retirement cornerstone, and investment edge primarily to affluent and high net worth individuals. The Group Retirement provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. It offers guaranteed and structured investment option, and personal income benefit variable annuity products and open architecture mutual fund platform. The Asset Management segment offers investment management and related services to various clients through institutions, retail, and private wealth management. The Protection Solutions segment provides life insurance products, such as VUL and COLI insurance, IUL insurance, and term life; and employee benefits business which includes group life, supplemental life, dental, vision, short-term disability, long-term disability, critical illness, accident and hospital indemnity insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

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.

Equitable Holdings, Inc. has a Value Score of 70, which is considered to be undervalued.

You can read more about Equitable Holdings, 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.

Federal National Mortgage Association’s Value Grade

Value Grade:

Federal National Mortgage Association provides financing solutions for residential mortgages in the United States. The company operates in two segments, Single-Family and Multifamily. It offers mortgage acquisitions and securitizations; and credit risk and loss management services. The company also engages in mortgage securitization transactions, including lender swap, portfolio securitization, and structured securitization transactions; and credit risk and loss management services. The company was incorporated in 1938 and is based in Washington, District of Columbia.

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.

Federal National Mortgage Association has a Value Score of 85, which is considered to be undervalued.

You can read more about Federal National Mortgage Association’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.

NMI Holdings, Inc.’s Value Grade

Value Grade:

NMI Holdings, Inc., together with its subsidiaries, provides private mortgage guaranty insurance services in the United States. It provides primary mortgage insurance services; and outsourced loan review services to mortgage loan originators. The company serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. NMI Holdings, Inc. was incorporated in 2011 and is headquartered in Emeryville, 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.

NMI Holdings, Inc. has a Value Score of 86, which is considered to be undervalued.

NMI Holdings, Inc.’s price-earnings ratio is 7.6 compared to the industry median at 15.1. This means that it has a lower price relative to its earnings compared to its peers. This makes NMI Holdings, Inc. more attractive for value investors.

NMI Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make NMI Holdings, Inc. less attractive for value investors when compared to the industry median at 1.23.

You can read more about NMI Holdings, 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.

PagSeguro Digital Ltd.’s Value Grade

Value Grade:

PagSeguro Digital Ltd., together with its subsidiaries, engages in the provision of financial and payment solutions for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. It provides digital banking solutions, including deposits, top-ups, debt management services, tax collections, wire transfers, ATM withdrawals, and various online and point-of-sale (POS) payment solutions; cards, such as debit, credit, cash, and prepaid cards; and credit products comprising FGTS withdrawals, payroll loans, working capital loans, and overdraft accounts. The company offers insurance services, including account, card, home, business, health assistance, life, and credit life insurance; investment services, such as investment and portfolio advisory, financial education, brokerage, fund management, treasury, and research services; and operates Shopping PagBank, a marketplace for various brands. In addition, it provides software solutions comprising PagVendas, a POS software app; ClubPag, a marketing tool that allows merchants to advertise across client base, available for POS devices; and PlugPag, a wireless solution that connects the machine to the commercial automation system, via Bluetooth technology. The company was founded in 2006 and is headquartered in São Paulo, Brazil.

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.

PagSeguro Digital Ltd. has a Value Score of 96, which is considered to be undervalued.

PagSeguro Digital Ltd.’s price-earnings ratio is 7.7 compared to the industry median at 15.1. This means that it has a lower price relative to its earnings compared to its peers. This makes PagSeguro Digital Ltd. more attractive for value investors.

PagSeguro Digital Ltd.’s price-to-book ratio is higher than its peers. This could make PagSeguro Digital Ltd. less attractive for value investors when compared to the industry median at 1.23.

You can read more about PagSeguro Digital Ltd.’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.

Radian Group Inc.’s Value Grade

Value Grade:

Radian Group Inc., together with its subsidiaries, provides mortgage insurance in the United States. It aggregates, manages, and distributes mortgage credit risk for the benefit of mortgage lending institutions and mortgage credit investors through private mortgage insurance on residential first-lien mortgage loans. The company also offers private mortgage insurance, specialty insurance, and reinsurance lines. It serves mortgage originators, such as mortgage banks, commercial banks, savings institutions, credit unions, and community banks. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, 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.

Radian Group Inc. has a Value Score of 91, which is considered to be undervalued.

Radian Group Inc.’s price-earnings ratio is 7.5 compared to the industry median at 15.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Radian Group Inc. more attractive for value investors.

Radian Group Inc.’s price-to-book ratio is higher than its peers. This could make Radian Group Inc. less attractive for value investors when compared to the industry median at 1.23.

You can read more about Radian 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.

StoneCo Ltd.’s Value Grade

Value Grade:

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. The company offers financial services, including payment, prepayment, digital banking, and credit solutions. It distributes its solutions, principally through proprietary and franchised Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2012 and is based in George Town, the Cayman Islands.

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.

StoneCo Ltd. has a Value Score of 94, which is considered to be undervalued.

StoneCo Ltd.’s price-earnings ratio is 9.0 compared to the industry median at 15.1. This means that it has a lower price relative to its earnings compared to its peers. This makes StoneCo Ltd. more attractive for value investors.

StoneCo Ltd.’s price-to-book ratio is lower than its peers. This could make StoneCo Ltd. more attractive for value investors when compared to the industry median at 1.23.

You can read more about StoneCo Ltd.’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 Financial Services 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 Financial Services stocks as well as other industrys.

Choosing Which of the 7 Best Financial Services 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.

• Acacia Research Corporation stock has a Value Grade of A.
• Equitable Holdings, Inc. stock has a Value Grade of B.
• Federal National Mortgage Association stock has a Value Grade of A.
• NMI Holdings, Inc. stock has a Value Grade of A.
• PagSeguro Digital Ltd. stock has a Value Grade of A.
• Radian Group Inc. stock has a Value Grade of A.
• StoneCo Ltd. stock has a Value Grade of A.

Now that you have a bit more background about each of the 7 undervalued stocks in the Financial Services 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 Financial Services Stocks

Want to learn more about Financial Services 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 Financial Services Stocks for Tuesday, March 24
• Is Berkshire Hathaway Inc. (BRK.A) Overvalued?
• Is Mastercard Incorporated (MA) Overvalued?
• Is Visa Inc. (V) Overvalued?

AAII Disclaimer

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