In this article, we will look at the 5 Most Undervalued Financial Stocks to Buy Now. Please visit 12 Most Undervalued Financial Stocks to Buy Now if you’d like to see an extended list and how we came up with the list of Financial stocks.
5. Lazard, Inc. (NYSE:LAZ)
On March 12, 2026, Lazard, Inc. (NYSE:LAZ) saw UBS lower its price target on the shares to $48 from $59 while maintaining a Neutral rating.
Also on March 12, 2026, Goldman Sachs reduced its price target on Lazard to $46 from $53 and kept a Sell rating. The firm noted that investment banking volumes are up about 4% year over year through March 9, though growth has slowed and could turn negative if geopolitical uncertainty persists. Goldman Sachs added that bank stocks are down roughly 15% year to date and have underperformed the S&P 500 due to multiple compression, though longer-term prospects for M&A remain constructive as the cycle is still viewed as being in the middle stages relative to the 2023 trough.
On March 10, 2026, Lazard reported preliminary assets under management of about $277.7 billion as of February 28. The month’s AUM included $8.9 billion in market appreciation and $4.2 billion in net inflows, partially offset by $0.8 billion in foreign exchange depreciation and a $1.5 billion decrease related to the sale of its stake in the Edgewater Funds management vehicles.
Lazard, Inc. (NYSE:LAZ) operates as a financial advisory and asset management firm across the Americas, Europe, the Middle East, Africa, and the Asia Pacific through its Financial Advisory and Asset Management segments.
4. Main Street Capital Corporation (NYSE:MAIN)
On March 10, 2026, Main Street Capital Corporation (NYSE:MAIN) announced that it completed a new portfolio investment totaling $61.5 million to support the minority recapitalization of a specialized structural steel fabricator. The investment included a combination of first-lien senior secured term debt and a direct minority equity investment. Main Street also provided a revolving credit facility to support the company’s future growth initiatives and working capital needs.
On February 26, 2026, Main Street Capital Corporation (NYSE:MAIN) reported fourth-quarter distributable net investment income of $1.09 per share, beating the $1.01 consensus estimate. Net asset value was $33.33 per share as of December 31, 2025, up $0.55 per share, or 1.7%, from $32.78 as of September 30, 2025. Chief Executive Officer Dwayne Hyzak said that the company delivered “continued strong performance in the fourth quarter,” closing another strong year for the firm. Dwayne Hyzak added that the results included record levels across key metrics, with return on equity reaching 17.7% for the quarter and 17.1% for the full year, supported by strong investment activity and growth in net asset value.
Main Street Capital Corporation (NYSE:MAIN) is a business development company and small business investment company that focuses on direct and indirect investments, including providing private equity capital to lower middle market companies.
3. Moelis & Company (NYSE:MC)
On March 12, 2026, Moelis & Company (NYSE:MC) saw UBS lower its price target on the shares to $59 from $74 previously while maintaining a Neutral rating.
Last month, Moelis & Company (NYSE:MC) reported Q4 EPS of $1.13, beating the 83c consensus estimate. Revenue came in at $487.9 million compared with the consensus of $435.1 million. CEO Navid Mahmoodzadegan said the firm delivered “strong momentum” in 2025, supported by what Mahmoodzadegan described as the strongest coverage platform in the company’s history, adding that Moelis enters 2026 positioned to drive further growth and long-term value.
Moelis & Company (NYSE:MC) operates as an investment banking advisory firm providing services including mergers and acquisitions, recapitalizations, restructurings, capital markets transactions, strategic advisory, capital structure advisory, and private capital advisory across North and South America, Europe, the Middle East, Asia, and Australia.
2. State Street Corporation (NYSE:STT)
On March 11, 2026, State Street Corporation (NYSE:STT) said at the RBC Capital Markets Global Financial Institutions Conference that first-quarter results are expected to come in stronger than what the company had anticipated earlier in the year. An executive has noted that a weaker dollar is relatively neutral to overall operating leverage but is expected to have “a couple of percentage points of impact on both revenue and expense on a year-over-year basis.”
The executive added that while the operating environment remains dynamic and some of the positive trends supporting results this quarter may not persist beyond Q1, the company remains confident in its ability to deliver another year of positive total operating leverage and pre-tax margin expansion across a range of scenarios.
Last month, in February, JPMorgan analyst Vivek Juneja raised the firm’s price target on State Street Corporation (NYSE:STT) to $137.50 from $135 previously while maintaining a Neutral rating on the shares.
State Street Corporation (NYSE:STT) provides financial products and services to institutional investors, including custody, accounting, and fund administration services for traditional and alternative assets, as well as trading, securities finance, and investment analytics solutions.
1. Flagstar Bank, National Association (NYSE:FLG)
On March 13, 2026, Flagstar Bank, National Association (NYSE:FLG) was upgraded by Keefe Bruyette analyst Christopher McGratty to Outperform from Market Perform with a price target of $16, raised from $14. The firm cited the stock’s recent underperformance, improving fundamentals, and what it described as an emerging share buyback catalyst as reasons for the upgrade.
On March 2, 2026, Morgan Stanley raised its price target on Flagstar Financial to $16 from $14 while maintaining an Equal Weight rating on the shares. The firm increased price targets by a median of 8% across the mid-cap banks group and pointed to tailwinds from loan growth, net interest margin expansion, and capital return, though it noted that recent outperformance raises the bar for further gains.
Earlier, Flagstar Financial reported Q4 adjusted EPS of 6c, beating the 2c consensus estimate. Revenue came in at $557 million versus consensus of $531.47 million, while tangible book value per share was $15.82. CEO Joseph Otting said the company was “extremely pleased” with its fourth-quarter performance as the bank returned to profitability after two challenging years, reporting net income attributable to common stockholders of $21 million, or $0.05 per diluted share, and $30 million on an adjusted basis.
Flagstar Bank, National Association (NYSE:FLG) provides banking products and services in the United States, including interest-bearing checking and money market accounts, savings accounts, non-interest-bearing accounts, and certificates of deposit.
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