Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 Undervalued Financial Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Financial Services industry for Friday, May 29, 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.

Enact Holdings, Inc.’s Value Grade

Value Grade:

Enact Holdings, Inc. operates as a private mortgage insurance company in the United States. The company engages in writing and assuming residential mortgage guaranty insurance. It also offers private mortgage insurance products insuring prime-based, individually underwritten residential mortgage loans; pool mortgage insurance; contract underwriting services; and mortgage-related reinsurance products. The company serves large money center banks, non-bank lenders, national and local mortgage bankers, community banks, and credit unions. The company was formerly known as Genworth Mortgage Holdings, Inc. and changed its name to Enact Holdings, Inc. in May 2021. Enact Holdings, Inc. was founded in 1981 and is headquartered in Raleigh, North Carolina. Enact Holdings, Inc. is a subsidiary of Genworth Holdings Inc.

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.

Enact Holdings, Inc. has a Value Score of 88, which is considered to be undervalued.

When you look at Enact Holdings, Inc.’s price-to-sales ratio at 4.98 compared to the industry median at 1.92, this company has a higher price relative to revenue compared to its peers. This could make Enact Holdings, Inc.’s stock less attractive for value investors.

Enact Holdings, Inc.’s price-earnings ratio is 9.10 compared to the industry median at 15.50. This means it has a lower share price relative to earnings compared to its peers. This could make Enact Holdings, Inc. more attractive for value investors.

Now, let’s assess Enact Holdings, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 10.0, 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. Enact Holdings, Inc.’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. Enact Holdings, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.37. This could make Enact Holdings, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Enact Holdings, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Enact Holdings, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.80. This could make Enact Holdings, Inc. more attractive because the lower P/FCF ratio indicates that Enact Holdings, 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.

Payoneer Global Inc.’s Value Grade

Value Grade:

Payoneer Global Inc. operates as a financial technology company. The company offers customers with a multi-currency account to serve their cross-border accounts receivable and accounts payable needs through payment infrastructure platform. It delivers a suite of services, such as funds management, working capital, multicurrency accounts, and workforce management. It also provides various payment options with minimal integration required, full back-office functions, and customer support. The company serves small and medium-sized businesses worldwide. Payoneer Global Inc. was founded in 2005 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.

Payoneer Global Inc. has a Value Score of 67, which is considered to be undervalued.

Payoneer Global Inc.’s price-earnings ratio is 25.6 compared to the industry median at 15.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Payoneer Global Inc. less attractive for value investors.

Payoneer Global Inc.’s price-to-book ratio is lower than its peers. This could make Payoneer Global Inc. more attractive for value investors when compared to the industry median at 1.37.

You can read more about Payoneer Global 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.

Priority Technology Holdings, Inc.’s Value Grade

Value Grade:

Priority Technology Holdings, Inc. operates as a payment technology company in the United States. The company operates through three segments: Merchant Solutions, Payables, and Treasury Solutions. The company offers merchant solutions, such as full-service acquiring and payment-enabled solutions for B2C transactions, leveraging proprietary software platform, distributed through independent sales organizations, direct sales, and vertically focused independent software vendors channels. It also offers MX product suite, which includes MX Connect and MX Merchant products, which provides flexible and customizable set of business applications that helps to manage critical business work functions and revenue performance using core payment processing. In addition, the company offers CPX, a platform that offers accounts payable automation solutions, including virtual card, purchase card, ACH +, dynamic discounting, or check. Further, it provides accounts payable automation solutions to corporations, software partners and financial institutions, including Citibank, Visa, and Mastercard. Additionally, the company offers embedded finance and BaaS solutions to customers to modernize legacy platforms and accelerate software partners' strategies to monetize payments. It serves SMB and enterprises, as well as distribution partners, including retail and wholesale independent sales organizations, financial institutions, and independent software vendors and value-added resellers. The company was formerly known as Priority Holdings, LLC and changed its name to Priority Technology Holdings, Inc. in July 2018. Priority Technology Holdings, Inc. was founded in 2005 and is headquartered in Alpharetta, Georgia.

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.

Priority Technology Holdings, Inc. has a Value Score of 87, which is considered to be undervalued.

Priority Technology Holdings, Inc.’s price-earnings ratio is 8.9 compared to the industry median at 15.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Priority Technology Holdings, Inc. more attractive for value investors.

You can read more about Priority Technology 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.

Waterstone Financial, Inc.’s Value Grade

Value Grade:

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates in two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, such as checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; investable funds solutions, such as savings, money market deposits, individual retirement accounts, and certificates of deposit; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. It also invests in a portfolio of securities comprising mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage obligations, municipal obligations, and other debt securities. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. Waterstone Financial, Inc. was founded in 1921 and is based in Wauwatosa, Wisconsin.

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.

Waterstone Financial, Inc. has a Value Score of 90, which is considered to be undervalued.

Waterstone Financial, Inc.’s price-earnings ratio is 11.3 compared to the industry median at 15.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Waterstone Financial, Inc. more attractive for value investors.

Waterstone Financial, Inc.’s price-to-book ratio is higher than its peers. This could make Waterstone Financial, Inc. less attractive for value investors when compared to the industry median at 1.37.

You can read more about Waterstone Financial, 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 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 4 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.

• Enact Holdings, Inc. stock has a Value Grade of A.
• Payoneer Global Inc. stock has a Value Grade of B.
• Priority Technology Holdings, Inc. stock has a Value Grade of A.
• Waterstone Financial, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 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.

• Economic Moats: The Engine Behind Long-Term Earnings Power
• 4 Undervalued Financial Services Stocks for Thursday, May 28
• Is Berkshire Hathaway Inc. (BRK.A) Overvalued?
• Is Mastercard Incorporated (MA) Overvalued?

AAII Disclaimer

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