Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 Undervalued Banks Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Banks industry for Monday, July 13, 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.

Cathay General Bancorp’s Value Grade

Value Grade:

Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States. It offers savings accounts, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, and public funds deposits, and acceptance of checking, savings, demand deposits, time deposits, real estate, and consumer loans. The company also provides loan products, such as commercial real estate loans, commercial loans, small business administration loans, residential mortgage loans, real estate construction loans, and home equity lines of credit, and installment loans to individuals for household and other consumer expenditures. In addition, it offers trade financing, letter of credit, wire transfer, foreign currency spot and forward contract, safe deposit, overdraft, cash checking, automatic teller machine, Internet banking, investment, and other customary bank services, as well as investment products and services, such as stocks, bonds, mutual funds, insurance, annuities, and advisory services. The company was formerly known as Cathay Bancorp, Inc. and changed its name to Cathay General Bancorp in November 2003. Cathay General Bancorp was founded in 1962 and is headquartered in Los Angeles, 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.

Cathay General Bancorp has a Value Score of 68, which is considered to be undervalued.

When you look at Cathay General Bancorp’s price-to-sales ratio at 5.49 compared to the industry median at 3.47, this company has a higher price relative to revenue compared to its peers. This could make Cathay General Bancorp’s stock less attractive for value investors.

Cathay General Bancorp’s price-earnings ratio is 12.70 compared to the industry median at 12.60. This means it has a higher share price relative to earnings compared to its peers. This could make Cathay General Bancorp 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. Cathay General Bancorp’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. Cathay General Bancorp’s price-to-book ratio is higher than its industry median ratio of 1.23. This could make Cathay General Bancorp less attractive to investors looking for a new addition to their portfolio.

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

Citizens Financial Group, Inc.’s Value Grade

Value Grade:

Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions in the United States. The company operates through two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, and wealth management services; and education and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. The company serves customers and small businesses, high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs, and companies and institutions, as well as multifamily, office, industrial, retail, healthcare, and hospitality sectors. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

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.

Citizens Financial Group, Inc. has a Value Score of 64, which is considered to be undervalued.

Citizens Financial Group, Inc.’s price-earnings ratio is 16.7 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 Citizens Financial Group, Inc. less attractive for value investors.

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

You can read more about Citizens Financial 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.

First BanCorp.’s Value Grade

Value Grade:

First BanCorp. operates as the bank holding company for FirstBank Puerto Rico that provides financial products and services to consumers and commercial customers. It operates through six segments: Mortgage Banking; Consumer (Retail) Banking; Commercial and Corporate Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; hedging activities; purchase of mortgage loans from branch and mortgage bankers; and origination of residential real estate loans. The Consumer (Retail) Banking segment is involved in consumer lending, commercial lending to small businesses, commercial transaction banking, and deposit-taking activities. The Commercial and Corporate Banking segment offers lending and other services, including commercial lending and commercial deposit-taking activities. The Treasury and Investments segment manages funding; and obtains funds through brokered deposits, advances from the FHLB, and repurchase agreements involving investment securities, among other funding sources. The United States Operations segment provides checking, savings, and money market accounts; retail CDs; internet banking services; residential mortgages; home equity loans and lines of credit; retail deposits; cash management services; remote data capture; automated clearing house transactions; and traditional commercial and industrial, and commercial real estate products, such as lines of credit, term loans, and construction loans. The Virgin Islands Operations segment focuses on consumer and commercial lending, and deposit-taking activities. The company also offers automobile financing and insurance agency services. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.

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 BanCorp. has a Value Score of 69, which is considered to be undervalued.

First BanCorp.’s price-earnings ratio is 11.8 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 First BanCorp. more attractive for value investors.

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

You can read more about First BanCorp.’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.

International Bancshares Corporation’s Value Grade

Value Grade:

International Bancshares Corporation, a multibank financial holding company, engages in the provision of commercial and retail banking services in Texas and the State of Oklahoma. The company accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. It also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collections, escrow, drive up and walk up facilities, and other customary banking services; and internet and mobile banking services, as well as securities products through third party providers. The company offers its banking services through ATM network and retail locations in shopping malls and other places. International Bancshares Corporation was founded in 1966 and is headquartered in Laredo, 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.

International Bancshares Corporation has a Value Score of 65, which is considered to be undervalued.

International Bancshares Corporation’s price-earnings ratio is 11.3 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 International Bancshares Corporation more attractive for value investors.

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

You can read more about International Bancshares 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.

Northrim BanCorp, Inc.’s Value Grade

Value Grade:

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through three segments: Community Banking, Home Mortgage Lending, and Specialty Finance. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short and medium-term working capital. In addition, the company offers consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox services, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, external transfer, bill pay, wire transfer, direct payroll deposit, electronic tax payment, automated clearing house origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

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.

Northrim BanCorp, Inc. has a Value Score of 81, which is considered to be undervalued.

Northrim BanCorp, Inc.’s price-earnings ratio is 9.5 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 Northrim BanCorp, Inc. more attractive for value investors.

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

You can read more about Northrim BanCorp, 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.

Univest Financial Corporation’s Value Grade

Value Grade:

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking services in the United States. It operates through three segments: Banking; Wealth Management; and Insurance. The Banking segment offers financial services to individuals, businesses, municipalities, and non-profit organizations, including deposit taking, loan origination and servicing, mortgage banking, other general banking services, and equipment lease financing. The Wealth Management segment provides investment advisory, financial planning and trust, and brokerage services for private families and individuals, municipal pension plans, retirement plans, trusts, and guardianships. The Insurance segment offers full-service insurance brokerage agency comprising commercial property and casualty insurance, employee benefit solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, 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.

Univest Financial Corporation has a Value Score of 70, which is considered to be undervalued.

Univest Financial Corporation’s price-earnings ratio is 13.1 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 Univest Financial Corporation less attractive for value investors.

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

You can read more about Univest 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 6 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.

• Cathay General Bancorp stock has a Value Grade of B.
• Citizens Financial Group, Inc. stock has a Value Grade of B.
• First BanCorp. stock has a Value Grade of B.
• International Bancshares Corporation stock has a Value Grade of B.
• Northrim BanCorp, Inc. stock has a Value Grade of A.
• Univest Financial Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Banks Stocks for Friday, July 10
• 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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