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 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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6 Undervalued Financial Services 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 Financial Services industry for Friday, August 14, 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.

Corebridge Financial, Inc.’s Value Grade

Value Grade:

Corebridge Financial, Inc. provides retirement solutions and insurance products in the United States. The company operates through Individual Retirement, Group Retirement, Life Insurance, and Institutional Markets segments. The Individual Retirement segment provides fixed annuities, fixed index and registered index-linked, and variable annuities. The Group Retirement segment offers in-plan products and services comprising an open architecture recordkeeping platform that allows plan participants to allocate money to a variety of mutual fund options or a fixed interest account; flexible group variable and fixed annuity; and in-plan investment advisory services. It also provides out-of-plan products and services, including proprietary and non-proprietary annuities; investment advisory solutions, such as fiduciary, fee-based investments; and brokerage services for non-proprietary variable annuity, securities, life insurance, mutual funds, and 529 plans. The Life Insurance segment offers term, whole, index universal, and guaranteed universal life insurance products. The Institutional Markets segment provides defined contribution and bank-owned life insurance stable value wraps, structured settlement and pension risk transfer annuities, corporate and bank-owned life insurance, private placement variable universal life and annuities products, and guaranteed investment contracts. The company was formerly known as SAFG Retirement Services, Inc. Corebridge Financial, Inc. was incorporated in 1998 and is headquartered in Houston, 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.

Corebridge Financial, Inc. has a Value Score of 78, which is considered to be undervalued.

When you look at Corebridge Financial, Inc.’s price-to-sales ratio at 0.87 compared to the industry median at 1.94, this company has a lower price relative to revenue compared to its peers. This could make Corebridge Financial, Inc.’s stock more attractive for value investors.

Corebridge Financial, Inc.’s price-earnings ratio is 18.70 compared to the industry median at 15.75. This means it has a higher share price relative to earnings compared to its peers. This could make Corebridge Financial, Inc. less attractive for value investors.

Now, let’s assess Corebridge Financial, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 14.0, when compared to the industry median of 9.3, the company may be considered overvalued 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. Corebridge Financial, 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. Corebridge Financial, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.43. This could make Corebridge Financial, Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Corebridge Financial, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Corebridge Financial, Inc.’s price-to-free-cash-flow ratio is higher than its industry median ratio of 11.60. This could make Corebridge Financial, Inc. less attractive because the higher P/FCF ratio indicates that Corebridge Financial, 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 Home Loan Mortgage Corporation’s Value Grade

Value Grade:

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company operates through two segments: Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment also serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, HFAs, savings institutions, and non-depository institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It also serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, REITs, non-depository institutions, and brokers and dealers. Federal Home Loan Mortgage Corporation was incorporated in 1970 and is headquartered in McLean, 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.

Federal Home Loan Mortgage Corporation has a Value Score of 91, which is considered to be undervalued.

You can read more about Federal Home Loan 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.

International Money Express, Inc.’s Value Grade

Value Grade:

International Money Express, Inc., together with its subsidiaries, operates as an omnichannel money remittance services company in the United States, Latin America, Mexico, Central and South America, the Caribbean, Africa, and Asia. The company offers remittance services, which include a suite of ancillary financial processing solutions and payment services; and online payment options, pre-paid debit cards, and direct deposit payroll cards. It provides services through sending and paying agents and company-operated stores, as well as through online and internet-enabled mobile devices. The company was founded in 1994 and is headquartered in Miami, Florida.

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 Money Express, Inc. has a Value Score of 83, which is considered to be undervalued.

International Money Express, Inc.’s price-earnings ratio is 14.4 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes International Money Express, Inc. more attractive for value investors.

International Money Express, Inc.’s price-to-book ratio is lower than its peers. This could make International Money Express, Inc. more attractive for value investors when compared to the industry median at 1.43.

You can read more about International Money Express, 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.

PayPay Corporation’s Value Grade

Value Grade:

PayPay Corporation, a digital finance platform, provides payment and financial services in Japan. It operates through two segments, Payment and Financial Service. The Payment segment provides payment settlement and related services through its PayPay app; and credit payment services, such as revolving and installment payment options and cash advances. The Financial service segment offers internet banking, securities intermediary, PayPay Point investment-related, and loan management services. It also provides PayPay settlement, PayPay balance, PayPay credit, payments using linked services, utility bill and tax payments, payments using PayPay bank app, overseas payment mode, credit payment settlement, revolving and installment payment option, cash advance, and acquiring services; and in financial services comprising internet banking, deposit accounts and remittance, lending, foreign exchange transaction, digital securities, app-based investment, PayPay securities app, automated investing, CFD trading, PayPay point management, and loan management services through credit engine. In addition, the company offers other value-added services for users and enterprises, such as insurance and marketing services that merchants have the option to subscribe. It serves users and merchants through PayPay brand names. The company was incorporated in 2018 and is headquartered in Shinjuku, Japan.

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.

PayPay Corporation has a Value Score of 64, which is considered to be undervalued.

PayPay Corporation’s price-earnings ratio is 13.3 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes PayPay Corporation more attractive for value investors.

PayPay Corporation’s price-to-book ratio is lower than its peers. This could make PayPay Corporation more attractive for value investors when compared to the industry median at 1.43.

You can read more about PayPay 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.

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 88, which is considered to be undervalued.

Waterstone Financial, Inc.’s price-earnings ratio is 12.6 compared to the industry median at 15.8. 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 1.43.

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.

The Western Union Company’s Value Grade

Value Grade:

The Western Union Company provides money movement payments, and digital financial services in the United States and internationally. It operates through two segments, Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers for international cross-border and intra-country transfers, primarily through a network of retail agents and owned locations, as well as through websites and mobile devices. The Consumer Services segments offers bill payment services, money order and media network services, travel money services, check acceptance services, prepaid cards, lending partnerships, and digital wallets. The company was founded in 1851 and is headquartered in Denver, Colorado.

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 Western Union Company has a Value Score of 96, which is considered to be undervalued.

The Western Union Company’s price-earnings ratio is 5.7 compared to the industry median at 15.8. This means that it has a lower price relative to its earnings compared to its peers. This makes The Western Union Company more attractive for value investors.

The Western Union Company’s price-to-book ratio is lower than its peers. This could make The Western Union Company more attractive for value investors when compared to the industry median at 1.43.

You can read more about The Western Union Company’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 6 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.

• Corebridge Financial, Inc. stock has a Value Grade of B.
• Federal Home Loan Mortgage Corporation stock has a Value Grade of A.
• International Money Express, Inc. stock has a Value Grade of A.
• PayPay Corporation stock has a Value Grade of B.
• Waterstone Financial, Inc. stock has a Value Grade of A.
• The Western Union Company stock has a Value Grade of A.

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

• 6 Undervalued Financial Services Stocks for Thursday, August 13
• Is Alerus Financial Corporation (ALRS) Overvalued?
• Is Cass Information Systems, Inc. (CASS) Overvalued?
• Is Compass Diversified (CODI) Overvalued?

AAII Disclaimer

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