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 Wednesday, July 08, 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.

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.

Bank of America Corporation’s Value Grade

Value Grade:

Bank of America Corporation, through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, checking accounts, and investment accounts and products; credit and debit cards; residential mortgages and home equity loans; and direct and indirect loans. The GWIM segment provides investment management, brokerage, banking, and trust and retirement products and services; wealth management solutions; and customized solutions, including specialty asset management services. The Global Banking segment offers lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, and underwriting and advisory services. The Global Markets segment provides market-making, financing, securities clearing, settlement, and custody services; securities and derivative products; and risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1784 and is based in Charlotte, North Carolina.

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.

Bank of America Corporation has a Value Score of 74, which is considered to be undervalued.

When you look at Bank of America Corporation’s price-to-sales ratio at 4.08 compared to the industry median at 3.47, this company has a higher price relative to revenue compared to its peers. This could make Bank of America Corporation’s stock less attractive for value investors.

Bank of America Corporation’s price-earnings ratio is 14.90 compared to the industry median at 12.65. This means it has a higher share price relative to earnings compared to its peers. This could make Bank of America Corporation 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. Bank of America Corporation’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. Bank of America Corporation’s price-to-book ratio is higher than its industry median ratio of 1.23. This could make Bank of America Corporation less attractive to investors looking for a new addition to their portfolio.

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

The Bank of Nova Scotia’s Value Grade

Value Grade:

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The company was founded in 1832 and is headquartered in Toronto, Canada.

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.

The Bank of Nova Scotia has a Value Score of 65, which is considered to be undervalued.

The Bank of Nova Scotia’s price-earnings ratio is 16.2 compared to the industry median at 12.6. This means that it has a higher price relative to its earnings compared to its peers. This makes The Bank of Nova Scotia less attractive for value investors.

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

You can read more about The Bank of Nova Scotia’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 Commonwealth Financial Corporation’s Value Grade

Value Grade:

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking products and services in the United States. The company’s consumer services include internet, mobile, and telephone banking; an automated teller machine network; personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, and IRA accounts. The company also provides commercial banking services comprising commercial lending and leasing, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. In addition, the company offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance products; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. Further, it provides commercial real estate, residential real estate, real estate construction loans, and loans to individuals, as well as commercial, financial, agricultural, and other loans. The company was founded in 1934 and is headquartered in Indiana, 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.

First Commonwealth Financial Corporation has a Value Score of 64, which is considered to be undervalued.

First Commonwealth Financial Corporation’s price-earnings ratio is 13.3 compared to the industry median at 12.6. This means that it has a higher price relative to its earnings compared to its peers. This makes First Commonwealth Financial Corporation less attractive for value investors.

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

You can read more about First Commonwealth 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.

Inter & Co, Inc.’s Value Grade

Value Grade:

Inter & Co, Inc., through its subsidiaries, engages in the banking and spending, investments, insurance brokerage, and inter shop businesses in Brazil and the United States. The company offers banking products and services, including checking accounts; cards; deposits; loans and advances; and other services, as well as debt collections; foreign exchange and financial services; and global account digital solution. It also provides acquisition, sale, and custody of securities; structures and distributes securities; and operates management of fund portfolios and other assets. In addition, the company offers insurance products including warranties, life, property, and automobile insurance; pension products; and consortium products. Further, it engages in the sale of goods and/or services through digital platform. Inter & Co, Inc. was founded in 1994 and is headquartered in Belo Horizonte, 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.

Inter & Co, Inc. has a Value Score of 79, which is considered to be undervalued.

Inter & Co, Inc.’s price-earnings ratio is 9.1 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Inter & Co, Inc. more attractive for value investors.

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

You can read more about Inter & Co, 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.

Provident Financial Services, Inc.’s Value Grade

Value Grade:

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company’s loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; residential mortgage loans; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning; and insurance agency operations. Further, it sells insurance and investment products, including annuities; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, 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.

Provident Financial Services, Inc. has a Value Score of 84, which is considered to be undervalued.

Provident Financial Services, Inc.’s price-earnings ratio is 10.0 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Provident Financial Services, Inc. more attractive for value investors.

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

You can read more about Provident Financial Services, 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.

1st Source Corporation’s Value Grade

Value Grade:

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients in the United States. The company’s consumer banking services, which include checking and savings accounts; certificates of deposit; health savings and individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. It also provides commercial, small business, agricultural, and real estate loans for financing of industrial and commercial properties, equipment, inventories, accounts receivables, acquisition, and general corporate purposes; and commercial leasing, treasury management, payment services, Fedwires, ACH and merchant services, and retirement planning services, as well as construction and permanent loans and tax equity investments for community solar, commercial and industrial, small utility scale, university, and municipal projects. In addition, the company offers trust, investment, agency, and custodial services for individual, estate and trust, corporate, and not-for-profit customers, as well as employee benefit plans and charitable foundations. Further, it provides equipment loan and lease products for construction equipment, aircraft, autos and light trucks, and medium and heavy-duty trucks; and financing services for construction equipment, new and pre-owned private and cargo aircraft, and various vehicle types for fleet purposes. Additionally, it offers property, casualty, individual and group health, and life insurance products and services for individuals and businesses; and owns and manages available-for-sale investment securities. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

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.

1st Source Corporation has a Value Score of 67, which is considered to be undervalued.

1st Source Corporation’s price-earnings ratio is 12.5 compared to the industry median at 12.6. This means that it has a lower price relative to its earnings compared to its peers. This makes 1st Source Corporation more attractive for value investors.

1st Source Corporation’s price-to-book ratio is lower than its peers. This could make 1st Source Corporation more attractive for value investors when compared to the industry median at 1.23.

You can read more about 1st Source 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.

Wintrust Financial Corporation’s Value Grade

Value Grade:

Wintrust Financial Corporation, a financial holding company, provides community-oriented, personal, and commercial banking services in the United States. It operates through three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest-bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine, online and mobile banking, and other services. This segment also engages in the retail origination of residential mortgages; provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations; and asset-based lending for middle-market companies. In addition, it provides loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services, including data processing of payrolls, billing, and cash management services to temporary staffing industry; other specialty finance services; equipment financing through structured loan and lease products; and property and casualty insurance premium financing. The Wealth Management segment provides wealth management services, such as trust and investment, tax-deferred like-kind exchange, asset management, and securities brokerage services. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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.

Wintrust Financial Corporation has a Value Score of 66, which is considered to be undervalued.

Wintrust Financial Corporation’s price-earnings ratio is 13.5 compared to the industry median at 12.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Wintrust Financial Corporation less attractive for value investors.

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

You can read more about Wintrust 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.

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.

• Bank of America Corporation stock has a Value Grade of B.
• The Bank of Nova Scotia stock has a Value Grade of B.
• First Commonwealth Financial Corporation stock has a Value Grade of B.
• Inter & Co, Inc. stock has a Value Grade of B.
• Provident Financial Services, Inc. stock has a Value Grade of A.
• 1st Source Corporation stock has a Value Grade of B.
• Wintrust Financial Corporation 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.

• 7 Undervalued Banks Stocks for Tuesday, July 07
• Is Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) Overvalued?
• Is Banco Santander, S.A. (SAN) Overvalued?
• Is Bank of America Corporation (BAC) Overvalued?

AAII Disclaimer

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