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 Friday, August 21, 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.

Amalgamated Financial Corp.’s Value Grade

Value Grade:

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services in the United States. It accepts various deposit products, including non-interest-bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, time deposits, and certificates of deposit. The company also provides commercial and industrial, multifamily mortgage, commercial real estate, residential real estate mortgage, consumer solar, and consumer and other loans. In addition, it offers online banking, bill payment, online cash management, safe deposit box rentals, debit card, and ATM card services; and trust, custody, and investment management services, including asset safekeeping, corporate actions, income collections, proxy services, account transition, asset transfers, and conversion management. Further, the company provides investment products, such as index and actively-managed funds, which include equity, fixed-income, real estate, and alternative investments; and investment, brokerage, asset management, and insurance products, as well as lending services. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

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.

Amalgamated Financial Corp. has a Value Score of 66, which is considered to be undervalued.

When you look at Amalgamated Financial Corp.’s price-to-sales ratio at 4.42 compared to the industry median at 3.51, this company has a higher price relative to revenue compared to its peers. This could make Amalgamated Financial Corp.’s stock less attractive for value investors.

Amalgamated Financial Corp.’s price-earnings ratio is 13.00 compared to the industry median at 12.50. This means it has a higher share price relative to earnings compared to its peers. This could make Amalgamated Financial 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. Amalgamated Financial 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. Amalgamated Financial Corp.’s price-to-book ratio is higher than its industry median ratio of 1.25. This could make Amalgamated Financial Corp. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Amalgamated Financial Corp.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Amalgamated Financial Corp.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.90. This could make Amalgamated Financial Corp. more attractive because the lower P/FCF ratio indicates that Amalgamated Financial 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.

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 64, which is considered to be undervalued.

The Bank of Nova Scotia’s price-earnings ratio is 16.2 compared to the industry median at 12.5. 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 1.25.

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.

BOK Financial Corporation’s Value Grade

Value Grade:

BOK Financial Corporation operates as the financial holding company for BOKF, NA that provides various financial products and services in Oklahoma, Texas, New Mexico, Northwest Arkansas, Colorado, Arizona, and Kansas/Missouri. It operates through three segments: Commercial Banking, Consumer Banking, and Wealth Management. The Commercial Banking segment offers lending, treasury, cash management, and customer commodity risk management products for small businesses, middle market, and larger commercial customers, as well as operates TransFund electronic funds transfer network. The Consumer Banking segment engages in the provision of retail lending and deposit services to small business customers through retail branch network; and mortgage loan origination and servicing activities. The Wealth Management segment offers fiduciary, private bank, insurance, and investment advisory services; and brokerage and trading services primarily related to providing liquidity to the mortgage markets through trading of U.S. government agency mortgage-backed securities and related derivative contracts, as well as underwrites state and municipal securities. The company also provides commercial loans, such as loans for working capital, facilities acquisition or expansion, purchases of equipment, and other needs of commercial customers; and service, healthcare, energy, and other sector loans. In addition, it offers commercial real estate loans for the construction of buildings or other improvements to real estate and property held by borrowers for investment purposes; residential mortgage and personal loans; and personal and small business checking, online bill paying, mobile banking, automated teller machine, and call centers services. The company was founded in 1910 and is headquartered in Tulsa, Oklahoma.

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.

BOK Financial Corporation has a Value Score of 80, which is considered to be undervalued.

BOK Financial Corporation’s price-earnings ratio is 13.2 compared to the industry median at 12.5. This means that it has a higher price relative to its earnings compared to its peers. This makes BOK Financial Corporation less attractive for value investors.

BOK Financial Corporation’s price-to-book ratio is lower than its peers. This could make BOK Financial Corporation more attractive for value investors when compared to the industry median at 1.25.

You can read more about BOK 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.

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 76, which is considered to be undervalued.

Cathay General Bancorp’s price-earnings ratio is 12.2 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Cathay General Bancorp more attractive for value investors.

Cathay General Bancorp’s price-to-book ratio is lower than its peers. This could make Cathay General Bancorp more attractive for value investors when compared to the industry median at 1.25.

You can read more about Cathay General 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.

First United Corporation’s Value Grade

Value Grade:

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals in the United States. It operates through Community Banking and Wealth Management segments. The company offers deposit products, such as checking, savings, money market, individual retirement (IRA), employee benefit, and health savings accounts; regular and IRA certificates of deposit (CD); and demand deposits. It also provides business and personal loans; commercial loans secured by real estate, commercial equipment, and vehicles or other assets of the borrower; residential mortgages; home equity lines of credit; real estate construction loans to builders and individuals for single-family dwellings; and consumer loans, including indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. In addition, the company offers brokerage; certificate of deposit account registry and IntraFi cash services; treasury management, cash sweep, and various checking opportunities; trust services, such as personal trust, investment agency accounts, charitable trusts, estate administration, and estate planning, as well as retirement accounts, including IRA rollovers, 401(k) accounts, and defined benefit plans; safe deposit and night depository facilities; and insurance products. Further, it provides online, mobile, and digital banking; debit and credit cards; business support; merchant services; remote deposit capture; positive pay; sweep and escrow accounts; check recovery and ordering; equipment loans; floorplan lending; mobile wallet and deposit; credit insights; personal finance; bill pay; CD and trust secured loans; boat and RV loans; and retirement planning services. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

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 United Corporation has a Value Score of 73, which is considered to be undervalued.

First United Corporation’s price-earnings ratio is 11.2 compared to the industry median at 12.5. This means that it has a lower price relative to its earnings compared to its peers. This makes First United Corporation more attractive for value investors.

First United Corporation’s price-to-book ratio is lower than its peers. This could make First United Corporation fairly attractive for value investors when compared to the industry median at 1.25.

You can read more about First United 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.

S&T; Bancorp, Inc.’s Value Grade

Value Grade:

S&T; Bancorp, Inc. operates as the bank holding company for S&T; Bank that provides retail and commercial banking products and services to consumer, commercial, and small businesses in Pennsylvania and Ohio. It accepts time and demand deposits; originates commercial and consumer loans; and cash management, brokerage, and trust services, as well as act as guardian of employee benefits. The company also manages private investment accounts for individuals and institutions. In addition, it engages in non-banking activities; and acts as a reinsurer of credit life, accident, and health insurance policies. S&T; Bancorp, Inc. was founded in 1902 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.

S&T; Bancorp, Inc. has a Value Score of 66, which is considered to be undervalued.

S&T; Bancorp, Inc.’s price-earnings ratio is 13.4 compared to the industry median at 12.5. This means that it has a higher price relative to its earnings compared to its peers. This makes S&T; Bancorp, Inc. less attractive for value investors.

S&T; Bancorp, Inc.’s price-to-book ratio is lower than its peers. This could make S&T; Bancorp, Inc. fairly attractive for value investors when compared to the industry median at 1.25.

You can read more about S&T; 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.

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.

• Amalgamated Financial Corp. stock has a Value Grade of B.
• The Bank of Nova Scotia stock has a Value Grade of B.
• BOK Financial Corporation stock has a Value Grade of B.
• Cathay General Bancorp stock has a Value Grade of B.
• First United Corporation stock has a Value Grade of B.
• S&T; Bancorp, Inc. 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 Thursday, August 20
• Is Citizens Community Bancorp, Inc. (CZWI) Overvalued?
• Which Is a Better Investment, 1st Source Corporation or Zions Bancorporation, National Association Stock?
• 5 Undervalued Banks Stocks for Wednesday, August 19

AAII Disclaimer

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