11 Most Undervalued Financial Stocks to Buy According to Wall Street Analysts

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1. PRA Group, Inc. (NASDAQ:PRAA)

Upside Potential: 84.59%

Forward P/E: 11.57

Number of Hedge Fund Holders: 22

PRA Group, Inc. (NASDAQ:PRAA) is one of the most undervalued financial stocks to buy according to Wall Street analysts. On September 24, PRA Group, Inc. announced that its Luxembourg subsidiary has priced a €300 million offering of senior notes due in 2032, carrying a 6.250% interest rate.

Backed on a senior unsecured basis by PRA Group and certain U.S. subsidiaries, the offering is expected to close around September 30. The company highlighted its strong liquidity position, with a current ratio of 13.86, reflecting solid short-term financial health.

Proceeds from the offering will be used to repay approximately $174 million in borrowings under both its North American and European revolving credit facilities, aligning with the company’s broader debt management strategy. With total debt at $3.65 billion, the refinancing is part of a move to optimize its capital structure. The notes will be offered only to qualified institutional buyers under Rule 144A and to certain non-U.S. investors under Regulation S, and are not intended for retail investors in the EEA or UK.

PRA Group, Inc. (NASDAQ:PRAA) is a financial services company. It specializes in the purchase, collection, and management of nonperforming loan portfolios, acquiring unpaid consumer debt from banks, credit unions, and other financial institutions across the Americas, Europe, and Australia. The company operates through its Core and Insolvency segments.

While we acknowledge the potential of PRAA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PRAA and that has 100x upside potential, check out our report about this cheapest AI stock.

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