In this article, we will look at the 12 Most Undervalued Financial Stocks to Buy Now.
Financial stocks have been trading at discounted valuations despite a backdrop of resilient credit conditions and improving profitability. Elevated interest rates have boosted net interest margins for many lenders, while capital markets activity has gradually recovered. Yet many banks, insurers, and diversified financial firms continue to trade at valuation multiples well below the broader market, leaving investors searching for opportunities where fundamentals and pricing appear disconnected.
McKinsey & Company’s Global Banking Annual Review 2025 suggests the industry is entering a period where operational precision and efficiency will matter more than sheer balance-sheet scale. In its recent analysis of the sector, the firm noted that “Precision, not heft, is the great equalizer,” arguing that institutions able to deploy capital and technology more effectively could generate stronger returns even in a more competitive environment.
At the same time, institutional investors see attractive entry points emerging within financial equities. In its 2026 Financials Outlook, Angel Oak Capital Advisors notes that many financial companies are trading at valuations that remain below long-term historical averages, even as performance has stayed relatively stable.
Valuation discipline has also become an increasingly important factor for long-term investors. In its 2026 Long-Term Capital Market Assumptions Report, J.P. Morgan Asset Management emphasizes that “the starting point for valuations has an impact on long-term returns,” underscoring how buying fundamentally sound companies at discounted prices can materially influence long-term performance.
Taken together, these perspectives suggest that a sector long overshadowed by technology-led market gains now offers value. With strong capital positions, improving earnings dynamics, and valuations that remain below historical norms in many cases, financial stocks present compelling opportunities for investors. With this in mind, we take a closer look at the 12 Most Undervalued Financial Stocks to Buy Now.
Our Methodology
We used the Finviz screener to identify Financial stocks that are trading below a forward P/E of 15, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
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12. AllianceBernstein Holding L.P. (NYSE:AB)
On March 11, 2026, AllianceBernstein Holding L.P. (NYSE:AB) said preliminary assets under management rose to $880 billion in February from $875 billion at the end of January. The 0.6% increase in month-end AUM was driven by market appreciation, partially offset by modest net outflows. By channel, inflows in Private Wealth and Institutional were offset by outflows in Retail during the month.
On March 6, 2026, Evercore ISI lowered its price target on AllianceBernstein to $41 from $43 while maintaining an Outperform rating on the shares. The firm adjusted price targets across the group after taking an early look at February and Q1 traditional asset manager flows.
Last month, AllianceBernstein reported Q4 adjusted EPS of 96c, beating the 92c consensus estimate. Revenue was $1.22 billion compared with the consensus of $956.06 million. CEO Seth Bernstein said 2025 marked a year of “disciplined execution and strategic progress” for the firm as it broadened its platform and deepened client relationships. He noted that the company ended the year with a record $867 billion in assets under management and generated organic growth in areas such as ultra-high-net-worth, insurance, separately managed accounts, active ETFs, and private markets. Bernstein added that private markets AUM reached $82 billion, up 18% year over year, while the firm generated more than $140 billion in sales during the year despite net outflows in active equities.
AllianceBernstein Holding L.P. (NYSE:AB) is a publicly owned investment manager that provides services to investment companies, pension and profit-sharing plans, banks and thrift institutions, trusts, estates, government agencies, charitable organizations, individuals, corporations, and other business entities.
11. Bank of America Corporation (NYSE:BAC)
On March 10, 2026, Bank of America Corporation (NYSE:BAC) co-president Dean Athanasia said at a conference hosted by RBC that first-quarter net interest income is tracking at least 7% higher year over year. Athanasia also said investment banking revenue is expected to rise about 10%, while the Markets segment is up in the low-double-digit range.
On February 19, 2026, Bloomberg reported that Bank of America plans to deploy about $25 billion into private-credit transactions, citing people familiar with the matter. The bank intends to commit its own capital to private-credit investments as it expands its direct-lending platform, with transactions expected to be originated through the firm’s capital markets unit within its investment banking division.
On February 18, 2026, Bank of America announced plans to launch BofA Rewards, a no-fee loyalty program. The bank said millions of clients will be able to enroll beginning May 27 to access benefits across eligible credit cards, cash back deals, banking services, and curated experiences, with members potentially receiving between $150 and $4,000 in annual value depending on membership tier and engagement.
Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides financial products and services to individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.
10. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
On March 9, 2026, Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) saw JPMorgan lower its price target on the shares to EUR 23.30 from EUR 23.50 previously while maintaining an Overweight rating.
Meanwhile, in February, Deutsche Bank raised its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 21.24 from EUR 19.75 previously and kept a Buy rating on the shares. RBC Capital has also increased its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 20.25 from EUR 19.75 previously, while maintaining a Sector Perform rating on the shares.
Separately, Morgan Stanley has lowered its price target on Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) to EUR 20 from EUR 20.70 previously and kept an Equal Weight rating on the shares.
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA), together with its subsidiaries, provides financial services across Spain, Mexico, Turkey, South America, Europe, the United States, and Asia. BBVA offers traditional retail, wholesale, investment, and transaction banking.
9. Chubb Limited (NYSE:CB)
On March 11, 2026, Chubb Limited (NYSE:CB) was reported by CNBC to serve as the lead underwriter for a government-led insurance program aimed at supporting ships transiting the Strait of Hormuz. The initiative, developed with the U.S. Development Finance Corporation, is part of a $20 billion plan designed to help oil tankers and other commercial vessels resume operations along the high-risk route.
On February 26, 2026, Morgan Stanley analyst Bob Huang raised the firm’s price target on Chubb to $330 from $310 while maintaining an Equal Weight rating on the shares. The firm updated targets across the property and casualty insurance group following Q4 results, noting that insurers with more differentiated underwriting performance are likely to see stronger share price performance. Morgan Stanley added that while pricing remains weak and AI-related headwinds persist, companies with durable underwriting margins could outperform.
Earlier in February, Chubb reported Q4 core EPS of $7.52, beating the $6.78 consensus estimate. Revenue was reported in line with expectations, around $11.14 billion. Chairman and CEO Evan Greenberg said the company delivered “a great quarter and a great year,” supported by strong contributions across its global businesses. He noted that double-digit growth in underwriting and life income, along with record investment income, drove operating income growth of more than 20% during the quarter while total company net premiums increased nearly 9%.
Chubb Limited (NYSE:CB) provides insurance and reinsurance products worldwide and operates across segments, including North America Commercial Property and Casualty Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.
8. Citizens Financial Group, Inc. (NYSE:CFG)
On March 9, 2026, Citizens Financial Group, Inc. (NYSE:CFG) was upgraded by Baird to Outperform from Neutral with an unchanged price target of $65. The firm said recent weakness in bank stocks has created more attractive risk-reward opportunities, adding that many regional banks currently offer a margin of safety given solid capital positions and stable credit trends.
On March 2, 2026, Morgan Stanley raised its price target on Citizens Financial Group, Inc. (NYSE:CFG) to $80 from $73 while maintaining an Overweight rating on the shares. The firm increased price targets across the mid-cap banks group by a median of 8%, citing tailwinds from loan growth, net interest margin expansion, and capital return despite noting that recent outperformance has raised the bar for the group.
Earlier, Citizens Financial reported Q4 EPS of $1.13, beating the $1.11 consensus estimate. Chairman and CEO Bruce Van Saun said the company delivered “good Q4 and full-year results” driven by the execution of key growth initiatives and continued improvement in net interest margin. He added that fee growth was supported by Capital Markets and Wealth, credit costs improved, and the company returned about 80% of capital to shareholders during the year.
Citizens Financial Group, Inc. (NYSE:CFG) operates as a bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions in the United States through its Consumer Banking and Commercial Banking segments.
7. The Goldman Sachs Group, Inc. (NYSE:GS)
On March 10, 2026, The Goldman Sachs Group, Inc. (NYSE:GS) saw JPMorgan raise its price target on the shares to $826 from $815 previously while maintaining a Neutral rating.
On March 5, 2026, Goldman Sachs Alternatives announced a strategic investment in cybersecurity compliance firm Schellman. The investment was made through the firm’s private equity platform and is intended to support Schellman’s next phase of growth, including expanding capabilities, scaling its team, and increasing its presence in areas such as AI governance, federal compliance, and digital trust. Lightyear Capital, which has been the majority investor since 2021, will remain a minority investor following the transaction, which is expected to close in the second quarter of 2026, subject to regulatory approvals.
Last month, The Wall Street Journal reported that Goldman Sachs plans to remove race, gender identity, sexual orientation, and other diversity-related factors from its board diversity criteria. The change follows a proposal submitted by the National Legal and Policy Center requesting the removal of DEI criteria, according to people familiar with the matter.
The Goldman Sachs Group, Inc. (NYSE:GS) provides financial services to corporations, financial institutions, governments, and individuals across the Americas, Europe, the Middle East, Africa, and Asia.
6. Invesco Ltd. (NYSE:IVZ)
On March 10, 2026, Invesco Ltd. (NYSE:IVZ) reported preliminary month-end assets under management of $2.26 trillion, up 1.2% from the previous month. The firm recorded $4.7 billion in net long-term inflows during February, while money market strategies saw $13.5 billion in net inflows. Favorable market returns increased AUM by $9 billion, partly offset by a $1.1 billion negative impact from foreign exchange.
On March 6, 2026, Evercore ISI analyst Glenn Schorr lowered the firm’s price target on Invesco Ltd. (NYSE:IVZ) to $29 from $31 while maintaining an In Line rating on the shares. The firm adjusted price targets across the asset manager group after taking an early look at February and Q1 traditional asset manager flows.
Earlier, Invesco Ltd. (NYSE:IVZ) reported Q4 adjusted EPS of 62c, beating the 58c consensus estimate. Revenue came in at $1.26 billion compared with the consensus of $1.25 billion, and the company ended the quarter with $2.2 trillion in assets under management.
Invesco Ltd. (NYSE:IVZ) is a publicly owned investment manager that provides services to retail and institutional clients, high-net-worth individuals, public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions, and sovereign wealth funds.
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