Featured Tickers:

BCML

FXNC

HTH

WAFD

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 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.

Click the button below to learn more about A+ Investor and subscribe today.

4 Undervalued Banks 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 Banks industry for Thursday, June 25, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Banks industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
BayCom Corp	BCML	3.58	13.5	na	5.7%	1.03	18.3	B
First National Corporation	FXNC	3.03	12.9	na	1.7%	1.44	14.9	B
Hilltop Holdings Inc.	HTH	1.92	14.9	na	10.5%	1.07	na	A
WaFd, Inc.	WAFD	3.93	12.4	na	9.8%	1.04	24.5	B

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.

BayCom Corp’s Value Grade

Value Grade:

Metric	Score	BCML	Industry Median
Price/Sales	68	3.58	3.42
Price/Earnings	32	13.5	12.4
EV/EBITDA	na	na	0.0
Shareholder Yield	13	5.7%	2.4%
Price/Book Value	24	1.03	1.22
Price/Free Cash Flow	48	18.3	15.9

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It also offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, and direct deposit services; treasury management services that includes balance reporting, transfers between accounts, wire transfer initiation, automated clearing house (ACH) origination, and stop payments; debit cards; cashier’s and travelers checks; letters of credit; and lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, 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.

BayCom Corp has a Value Score of 71, which is considered to be undervalued.

When you look at BayCom Corp’s price-to-sales ratio at 3.58 compared to the industry median at 3.42, this company has a higher price relative to revenue compared to its peers. This could make BayCom Corp’s stock less attractive for value investors.

BayCom Corp’s price-earnings ratio is 13.50 compared to the industry median at 12.40. This means it has a higher share price relative to earnings compared to its peers. This could make BayCom Corp less 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. BayCom Corp’s shareholder yield is higher than its industry median ratio of 2.40%. 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. BayCom Corp’s price-to-book ratio is lower than its industry median ratio of 1.22. This could make BayCom Corp more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at BayCom Corp’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. BayCom Corp’s price-to-free-cash-flow ratio is higher than its industry median ratio of 15.90. This could make BayCom Corp less attractive because the higher P/FCF ratio indicates that BayCom Corp 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.

First National Corporation’s Value Grade

Value Grade:

Metric	Score	FXNC	Industry Median
Price/Sales	62	3.03	3.42
Price/Earnings	29	12.9	12.4
EV/EBITDA	na	na	0.0
Shareholder Yield	32	1.7%	2.4%
Price/Book Value	38	1.44	1.22
Price/Free Cash Flow	39	14.9	15.9

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company’s deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products also comprise construction loans, including residential and land development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, such as multi-family residential buildings, industrial and warehouse buildings, hotels, and religious facilities. In addition, the company’s loan products include commercial and industrial loans; home equity loans; consumer loans, such as lines of credit, automobile loans, and unsecured loans. Further, it provides wealth management services comprising estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, 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 National Corporation has a Value Score of 65, which is considered to be undervalued.

First National Corporation’s price-earnings ratio is 12.9 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes First National Corporation less attractive for value investors.

First National Corporation’s price-to-book ratio is lower than its peers. This could make First National Corporation more attractive for value investors when compared to the industry median at 1.22.

You can read more about First National 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.

Hilltop Holdings Inc.’s Value Grade

Value Grade:

Metric	Score	HTH	Industry Median
Price/Sales	47	1.92	3.42
Price/Earnings	36	14.9	12.4
EV/EBITDA	na	na	0.0
Shareholder Yield	4	10.5%	2.4%
Price/Book Value	25	1.07	1.22
Price/Free Cash Flow	na	na	15.9

Hilltop Holdings Inc. provides business and consumer banking services. The company operates through three segments: Banking, Broker-Dealer, and Mortgage Origination. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, term, agricultural and commercial real estate, equipment loans, and other lending products; and mortgage, commercial and industrial loans, and term and construction finance. It provides treasury management, asset management, check cards, safe deposit boxes, online banking, bill pay, and overdraft privilege services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts services, as well as automated teller machines. The Broker-Dealer segment offers public finance services that assist public entities in originating, syndicating, and distributing securities of municipalities and political subdivisions; specialized advisory and investment banking services; advice and guidance to arbitrage rebate compliance, portfolio management, and local government investment pool administration; advisory services and products for derivatives and commodities; agricultural insurance; and sells, trades in, and underwrites U.S. government and government agency bonds, corporate bonds, and municipal bonds; mortgage-backed, asset-backed, and commercial mortgage-backed securities and structured products; and provides asset and liability management advisory, clearing, retail, and securities lending services. The Mortgage Origination segment offers fixed and adjustable rate mortgages, jumbo, new construction, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. Hilltop Holdings Inc. was incorporated in 1998 and is headquartered in Dallas, Texas.

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.

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

Hilltop Holdings Inc.’s price-earnings ratio is 14.9 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Hilltop Holdings Inc. less attractive for value investors.

Hilltop Holdings Inc.’s price-to-book ratio is higher than its peers. This could make Hilltop Holdings Inc. less attractive for value investors when compared to the industry median at 1.22.

You can read more about Hilltop 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.

WaFd, Inc.’s Value Grade

Value Grade:

Metric	Score	WAFD	Industry Median
Price/Sales	71	3.93	3.42
Price/Earnings	27	12.4	12.4
EV/EBITDA	na	na	0.0
Shareholder Yield	5	9.8%	2.4%
Price/Book Value	24	1.04	1.22
Price/Free Cash Flow	60	24.5	15.9

WaFd, Inc. operates as the bank holding company for Washington Federal Bank that provides lending, depository, insurance, and other banking services in the United States. The company provides deposit products, including business and personal checking accounts, and term certificates of deposit, as well as money market accounts and passbook savings accounts. It offers single-family residential, construction, land acquisition and development, consumer lot, multi-family residential, commercial real estate, home equity, business, and consumer loans, as well as commercial and industrial loans. In addition, the company offers insurance brokerage services, such as individual and business insurance policies; holds and markets real estate properties; and debit and credit cards, as well as acts as the trustee. Additionally, it provides technology and data services; and personalized financial guidance and investment services. It serves consumers, mid-sized and large businesses, and owners and developers of commercial real estate. The company was formerly known as Washington Federal, Inc. and changed its name to WaFd, Inc. in September 2023. WaFd, Inc. was founded in 1917 and is headquartered in Seattle, 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.

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

WaFd, Inc.’s price-earnings ratio is 12.4 compared to the industry median at 12.4. This means that it has a higher price relative to its earnings compared to its peers. This makes WaFd, Inc. fairly attractive for value investors.

WaFd, Inc.’s price-to-book ratio is higher than its peers. This could make WaFd, Inc. less attractive for value investors when compared to the industry median at 1.22.

You can read more about WaFd, 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 4 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.

BayCom Corp stock has a Value Grade of B.
First National Corporation stock has a Value Grade of B.
Hilltop Holdings Inc. stock has a Value Grade of A.
WaFd, Inc. stock has a Value Grade of B.

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

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.