10 Best Bank Stocks to Buy Trading Under Book Value

6. Prosperity Bancshares, Inc. (NYSE:PB)

Price-to-Book Ratio: 0.84x

Market Cap: $6.43 billion

Number of Hedge Fund Holders: 31

Prosperity Bancshares, Inc. (NYSE:PB) is one of the best bank stocks to buy trading under book value. On July 24, Piper Sandler has maintained its Overweight rating on Prosperity Bancshares, Inc. (NYSE:PB) while slightly lowering the price target from $86 to $84 per share. At the current trading price of $67.42, this revised target implies a potential upside of nearly 25%, signaling that the bank remains an attractive investment opportunity despite the modest target cut.

The price adjustment reflects a cautious approach, possibly influenced by recent market volatility or valuation concerns, but it doesn’t diminish confidence in Prosperity’s solid fundamentals. The bank continues to benefit from strong regional banking dynamics, disciplined management, and a stable credit profile. These factors support the firm’s positive outlook and suggest the stock could outperform peers over the medium term.

Investors looking for exposure to well-managed regional banks may find Prosperity Bancshares appealing given its growth prospects and reasonable valuation. The significant upside potential at current prices keeps the stock well-positioned for gains as it capitalizes on its strategic initiatives and market opportunities.