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 Thursday, July 09, 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 85, which is considered to be undervalued.

When you look at Enact Holdings, Inc.’s price-to-sales ratio at 5.30 compared to the industry median at 1.95, 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 9.70 compared to the industry median at 15.25. 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 9.2, 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 0.30%. 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 1.32. 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 12.15. 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.

Federal Agricultural Mortgage Corporation’s Value Grade

Value Grade:

Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through seven segments: Farm & Ranch, Corporate AgFinance, Power & Utilities, Broadband Infrastructure, Renewable Energy, Funding, and Investments. The Farm & Ranch segment includes the USDA Securities portfolio, Farm & Ranch loans, and AgVantage securities secured by Farm & Ranch loans. The Corporate AgFinance segment includes loans and AgVantage securities to larger and more complex farming operations, agribusinesses focused on food and fiber processing, and other supply chain production. The Power & Utilities segment includes loans to rural electric generation and transmission cooperatives and distribution cooperatives, as well as AgVantage securities secured by those types of loans. The Broadband Infrastructure segment includes loans to rural fiber, cable/broadband, tower, wireless, local exchange carrier, and data center projects. The Renewable Energy segment includes rural electric, solar, wind, and gas projects. The Funding segment includes debt issuance, hedging, asset/liability management, and capital allocation. The Investments segment includes an investment portfolio, which is held for liquidity purposes. The company is involved in a line of agricultural finance business, including purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in, or obligations secured by pools of eligible loans; servicing eligible loans; and issuing long-term standby purchase commitments for designated eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered 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 Agricultural Mortgage Corporation has a Value Score of 61, which is considered to be undervalued.

Federal Agricultural Mortgage Corporation’s price-earnings ratio is 11.4 compared to the industry median at 15.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Federal Agricultural Mortgage Corporation more attractive for value investors.

Federal Agricultural Mortgage Corporation’s price-to-book ratio is lower than its peers. This could make Federal Agricultural Mortgage Corporation more attractive for value investors when compared to the industry median at 1.32.

You can read more about Federal Agricultural Mortgage 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.

Cannae Holdings, Inc.’s Value Grade

Value Grade:

Cannae Holdings, Inc. is a principal investment firm. The firm primarily invests in restaurants, technology enabled healthcare services, financial services and more. It takes both minority and majority stakes. Cannae Holdings, Inc. was founded in 2014 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.

Cannae Holdings, Inc. has a Value Score of 95, which is considered to be undervalued.

Cannae Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make Cannae Holdings, Inc. less attractive for value investors when compared to the industry median at 1.32.

You can read more about Cannae 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.

Finance of America Companies Inc.’s Value Grade

Value Grade:

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, provides home equity-based financing solutions for a modern retirement in the United States. The company operates through two segments: Retirement Solutions and Portfolio Management. It offers home equity conversion and non-agency reverse mortgage loans; and product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services. The company was founded in 2013 and is headquartered in Plano, 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.

Finance of America Companies Inc. has a Value Score of 98, which is considered to be undervalued.

Finance of America Companies Inc.’s price-earnings ratio is 13.5 compared to the industry median at 15.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Finance of America Companies Inc. more attractive for value investors.

Finance of America Companies Inc.’s price-to-book ratio is higher than its peers. This could make Finance of America Companies Inc. less attractive for value investors when compared to the industry median at 1.32.

You can read more about Finance of America Companies 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.

PennyMac Financial Services, Inc.’s Value Grade

Value Grade:

PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through two segments, Production and Servicing. The Production segment is involved in the origination, acquisition, and sale of loans. This segment also sources residential conventional and government-insured or guaranteed mortgage loans through correspondent production, consumer direct lending, and broker direct lending. The Servicing segment performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; responds to customer inquiries; provides accounting for principal and interest; holds custodial funds for the payment of property taxes and insurance premiums; offers counseling for delinquent borrowers; and supervising foreclosures and property dispositions, as well as administers loss mitigation activities comprising modification and forbearance programs, and supervising foreclosures and property dispositions. The company was founded in 2008 and is headquartered in Westlake Village, 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.

PennyMac Financial Services, Inc. has a Value Score of 87, which is considered to be undervalued.

PennyMac Financial Services, Inc.’s price-earnings ratio is 8.6 compared to the industry median at 15.3. This means that it has a lower price relative to its earnings compared to its peers. This makes PennyMac Financial Services, Inc. more attractive for value investors.

PennyMac Financial Services, Inc.’s price-to-book ratio is higher than its peers. This could make PennyMac Financial Services, Inc. less attractive for value investors when compared to the industry median at 1.32.

You can read more about PennyMac 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.

PicS N.V.’s Value Grade

Value Grade:

PicS N.V. operates as a digital financial services company that provides digital wallet and application for individuals and businesses in Brazil. The company offers a range of transactional products for its consumers, including Pix, an instant payment system, peer-to-peer between PicPay accounts, bill payments, payroll portability, global account, and a payment assistant that helps consumers organize, centralize, and settle bills through an integrated hub. The company also provides multipurpose cards; personal loans; instalment payments; payroll loans for public servants, retirees, and pensioners; private payroll loans for formally employed workers; and access to the FGTS annual birthday withdrawal program. In addition, it offers digital insurance distribution platform with products, such as digital wallet insurance, PicPay Card bill protection, credit life insurance, smartphone protection, life insurance, home insurance, and others, as well as provides a range of products to various investor profiles and financial goals. Further, the company offers a portfolio of products in QR code payments for small and medium-sized businesses; banking services; corporate benefits and salary advances; PicPay Shop that offers consumers to purchase a range of products and services; and PicPay Ads, an advertising platform designed to enable brands to reach engaged consumer base through contextualized placements within the app. PicS N.V. was formerly known as Picpay Holdings Netherlands B.V. The company was founded in 2012 and is based in São Paulo, Brazil. PicS N.V. is a subsidiary of Jf International B.v.

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.

PicS N.V. has a Value Score of 94, which is considered to be undervalued.

PicS N.V.’s price-earnings ratio is 6.3 compared to the industry median at 15.3. This means that it has a lower price relative to its earnings compared to its peers. This makes PicS N.V. more attractive for value investors.

PicS N.V.’s price-to-book ratio is higher than its peers. This could make PicS N.V. less attractive for value investors when compared to the industry median at 1.32.

You can read more about PicS N.V.’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 provides financial services, including payment, prepayment, digital banking, and credit solutions. It offers payment solutions of electronic payments and alternative payment methods, such as payment slips and Pix transactions; digital product to help merchants improve their consumers’ experience, which include split-payment processing, multi-payment processing, and recurring payments for subscriptions; and tap on phone solution. In addition, the company provides prepayment; digital banking; and credit solution. The company serves online, offline, and omni-channel sales clients under Stone, tonstone, and paggar.me. 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 99, which is considered to be undervalued.

StoneCo Ltd.’s price-earnings ratio is 4.0 compared to the industry median at 15.3. 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 higher than its peers. This could make StoneCo Ltd. less attractive for value investors when compared to the industry median at 1.32.

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.

• Enact Holdings, Inc. stock has a Value Grade of A.
• Federal Agricultural Mortgage Corporation stock has a Value Grade of B.
• Cannae Holdings, Inc. stock has a Value Grade of A.
• Finance of America Companies Inc. stock has a Value Grade of A.
• PennyMac Financial Services, Inc. stock has a Value Grade of A.
• PicS N.V. 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 Wednesday, July 08
• Is Berkshire Hathaway Inc. (BRK.A) Overvalued?
• Is Mastercard Incorporated (MA) Overvalued?
• Is Visa Inc. (V) Overvalued?

AAII Disclaimer

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