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, October 02, 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.

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 68, which is considered to be undervalued.

When you look at Federal Agricultural Mortgage Corporation’s price-to-sales ratio at 5.57 compared to the industry median at 1.74, this company has a higher price relative to revenue compared to its peers. This could make Federal Agricultural Mortgage Corporation’s stock less attractive for value investors.

Federal Agricultural Mortgage Corporation’s price-earnings ratio is 11.40 compared to the industry median at 16.80. This means it has a lower share price relative to earnings compared to its peers. This could make Federal Agricultural Mortgage Corporation more 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. Federal Agricultural Mortgage Corporation’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. Federal Agricultural Mortgage Corporation’s price-to-book ratio is higher than its industry median ratio of 1.42. This could make Federal Agricultural Mortgage Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Federal Agricultural Mortgage Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Federal Agricultural Mortgage Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.60. This could make Federal Agricultural Mortgage Corporation more attractive because the lower P/FCF ratio indicates that Federal Agricultural Mortgage 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.

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 75, which is considered to be undervalued.

Corebridge Financial, Inc.’s price-earnings ratio is 18.7 compared to the industry median at 16.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Corebridge Financial, Inc. less attractive for value investors.

Corebridge Financial, Inc.’s price-to-book ratio is lower than its peers. This could make Corebridge Financial, Inc. more attractive for value investors when compared to the industry median at 1.42.

You can read more about Corebridge 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.

MGIC Investment Corporation’s Value Grade

Value Grade:

MGIC Investment Corporation, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions, and ancillary services in the United States, the District of Columbia, Puerto Rico, and Guam. The company offers primary insurance that provides mortgage default protection on individual loans, as well as covers unpaid loan principal, delinquent interest, and various expenses associated with the default and subsequent foreclosure on the mortgage or sale of the underlying property. It also provides contract underwriting services, as well as reinsurance services. The company serves originators of residential mortgage loans, including savings institutions, commercial banks, mortgage brokers, credit unions, mortgage bankers, and other lenders. The company was founded in 1957 and is headquartered in Milwaukee, 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.

MGIC Investment Corporation has a Value Score of 87, which is considered to be undervalued.

MGIC Investment Corporation’s price-earnings ratio is 8.2 compared to the industry median at 16.8. This means that it has a lower price relative to its earnings compared to its peers. This makes MGIC Investment Corporation more attractive for value investors.

MGIC Investment Corporation’s price-to-book ratio is higher than its peers. This could make MGIC Investment Corporation less attractive for value investors when compared to the industry median at 1.42.

You can read more about MGIC Investment 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.

NewtekOne, Inc.’s Value Grade

Value Grade:

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that provides various business and financial solutions under the Newtek and NewtekOne brands to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including the United States small business administration loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based point of sale systems for various restaurants, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners, as well as inbound and outbound calling services. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, 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.

NewtekOne, Inc. has a Value Score of 90, which is considered to be undervalued.

NewtekOne, Inc.’s price-earnings ratio is 5.1 compared to the industry median at 16.8. This means that it has a lower price relative to its earnings compared to its peers. This makes NewtekOne, Inc. more attractive for value investors.

NewtekOne, Inc.’s price-to-book ratio is higher than its peers. This could make NewtekOne, Inc. less attractive for value investors when compared to the industry median at 1.42.

You can read more about NewtekOne, 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.

NMI Holdings, Inc.’s Value Grade

Value Grade:

NMI Holdings, Inc., together with its subsidiaries, provides private mortgage guaranty insurance services in the United States. It provides primary mortgage insurance services; and outsourced loan review services to mortgage loan originators. The company serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. NMI Holdings, Inc. was incorporated in 2011 and is headquartered in Emeryville, 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.

NMI Holdings, Inc. has a Value Score of 87, which is considered to be undervalued.

NMI Holdings, Inc.’s price-earnings ratio is 7.5 compared to the industry median at 16.8. This means that it has a lower price relative to its earnings compared to its peers. This makes NMI Holdings, Inc. more attractive for value investors.

NMI Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make NMI Holdings, Inc. less attractive for value investors when compared to the industry median at 1.42.

You can read more about NMI 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.

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 3.6 compared to the industry median at 16.8. 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 1.42.

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 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.

• Federal Agricultural Mortgage Corporation stock has a Value Grade of B.
• Corebridge Financial, Inc. stock has a Value Grade of B.
• MGIC Investment Corporation stock has a Value Grade of A.
• NewtekOne, Inc. stock has a Value Grade of A.
• NMI Holdings, Inc. 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 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, October 01
• Why Paysign, Inc.’s (PAYS) Stock Is Up 5.08%
• Why Stewards Inc.’s (SWRD) Stock Is Down 6.40%
• Why Stewards Inc.’s (SWRD) Stock Is Down 8.68%

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