Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 Undervalued Financial Services Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Financial Services industry for Wednesday, October 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.

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 69, which is considered to be undervalued.

When you look at Federal Agricultural Mortgage Corporation’s price-to-sales ratio at 5.44 compared to the industry median at 1.89, 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 11.20 compared to the industry median at 17.40. 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 0.20%. 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 1.41. 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 11.15. 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.

Berkshire Hathaway Inc.’s Value Grade

Value Grade:

Berkshire Hathaway Inc., together with its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses. The company provides property, casualty, life, accident, and health insurance and reinsurance; operates railroad systems in North America; generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. It manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; prefabricated and site-built residential homes, flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. In addition, the company provides recreational vehicles, apparel, footwear, toys, jewelry, custom picture framing products, alkaline batteries, logistics services, and professional aviation training and shared aircraft ownership programs; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. Further, it distributes televisions and information, and grocery and non-food consumer products; franchises and services quick service restaurants; and distributes electronic components. Additionally, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and floor coverings; watches, home decor and repair services; sells kitchenware; and motorcycle clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

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.

Berkshire Hathaway Inc. has a Value Score of 67, which is considered to be undervalued.

Berkshire Hathaway Inc.’s price-earnings ratio is 13.1 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Berkshire Hathaway Inc. more attractive for value investors.

Berkshire Hathaway Inc.’s price-to-book ratio is lower than its peers. This could make Berkshire Hathaway Inc. more attractive for value investors when compared to the industry median at 1.41.

You can read more about Berkshire Hathaway 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.

Fiserv, Inc.’s Value Grade

Value Grade:

Fiserv, Inc. provides payments and financial services technology solutions in the United States, Europe, the Middle East and Africa, Latin America, the Asia-Pacific, and internationally. It operates through the Merchant Solutions and Financial Solutions segments. The Merchant Solutions segment offers merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. Its Financial Solutions segment provides digital payments, including debit card processing services, debit network services, security and fraud protection products, bill payment, person-to-person payments, and account-to-account transfers; issuing services comprising credit card processing services, prepaid card processing services, card production services, print services, government payment processing, and student loan processing; and banking services, such as customer loan and deposit account processing, digital banking, financial and risk management, professional services and consulting, and check processing services. The company serves merchants, banks, credit unions, other financial institutions, corporate, and public sector customers. The company has a strategic alliance with Western Alliance Bancorporation; it has a strategic partnership with Mastercard to enable eligible enterprise merchants simplify commerce through an expanded suite of integrated value-added services. Fiserv, Inc. was incorporated in 1984 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.

Fiserv, Inc. has a Value Score of 89, which is considered to be undervalued.

Fiserv, Inc.’s price-earnings ratio is 8.9 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Fiserv, Inc. more attractive for value investors.

Fiserv, Inc.’s price-to-book ratio is higher than its peers. This could make Fiserv, Inc. less attractive for value investors when compared to the industry median at 1.41.

You can read more about Fiserv, 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 86, which is considered to be undervalued.

NMI Holdings, Inc.’s price-earnings ratio is 7.8 compared to the industry median at 17.4. 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 1.41.

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.

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 4 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.
• Berkshire Hathaway Inc. stock has a Value Grade of B.
• Fiserv, Inc. stock has a Value Grade of A.
• NMI Holdings, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 4 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.

• 4 Undervalued Financial Services Stocks for Tuesday, October 13
• Why Teamshares Inc.’s (TMS) Stock Is Down 5.06%
• 4 Undervalued Financial Services Stocks for Monday, October 12
• Why Better Home & Finance Holding Company’s (BETR) Stock Is Down 10.19%

AAII Disclaimer

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