5 Oversold Bank Stocks To Buy

In this piece, we will take a look at five oversold bank stocks to buy. If you want to see what’s happening in the banking industry right now, then take a look at 10 Oversold Bank Stocks To Buy.

5. Red River Bancshares, Inc. (NASDAQ:RRBI)

Latest RSI Reading: 43.78

Red River Bancshares, Inc. (NASDAQ:RRBI) operates primarily in Louisiana and serves the needs of both regular and corporate customers. The firm has consistently beaten consensus analyst EPS estimates in its four latest quarters, and the bank has maintained profitability during the first six months of this year despite the fact that the regional banking sector has been dealt hefty blows.

Three of the 943 hedge funds part of Insider Monkey’s Q1 2023 database of 943 hedge funds had bought Red River Bancshares, Inc. (NASDAQ:RRBI)’s shares. Fred Cummings’ Elizabeth Park Capital Management is the largest shareholder with a stake worth $2.4 million.

4. Carter Bankshares, Inc. (NASDAQ:CARE)

Latest RSI Reading: 41.51

Carter Bankshares, Inc. (NASDAQ:CARE) is a Martinsville, Virginia based regional bank holding company. Its second quarter 2023 earnings per share was a wide miss over analyst estimates, which was surprising since Carter Bankshares, Inc. (NASDAQ:CARE) had consistently topped them during the previous three quarters.

After sifting through 943 hedge fund portfolios for 2023’s March quarter, Insider Monkey found out that nine had owned a stake in Carter Bankshares, Inc. (NASDAQ:CARE).

3. Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO)

Latest RSI Reading: 41.07

Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) is a sizeable bank with close to five hundred employees and a century-old history. Its second quarter of 2023 earnings marked 81 consecutive quarters of profitability as total loans and total assets both soared to record highs. However, Farmers & Merchants Bancorp, Inc. (NASDAQ:FMAO) has missed analyst EPS estimates for its four latest quarters and the stock is rated Hold on average with the latest rating coming from Stephens & Co. which has rated the shares as Equal Weight.

2. Territorial Bancorp Inc. (NASDAQ:TBNK)

Latest RSI Reading: 38.23

Territorial Bancorp Inc. (NASDAQ:TBNK) is a Hawaiian bank serving both retail customers and businesses. Piper Sandler, which has covered the stock since 2020, rated the shares as Underweight in July 2023 which is perhaps unsurprising since it’s been three quarters since Territorial Bancorp Inc. (NASDAQ:TBNK) beat quarterly analyst EPS estimates.

As of March 2023, six of the 943 hedge funds part of Insider Monkey’s database had bought Territorial Bancorp Inc. (NASDAQ:TBNK)’s shares. Out of these, the bank’s largest investor is Jim Simons’ Renaissance Technologies due to its $9.3 million investment.

1. Waterstone Financial, Inc. (NASDAQ:WSBF)

Latest RSI Reading: 35.99

Waterstone Financial, Inc. (NASDAQ:WSBF) is a Wisconsin-based bank that provides services in the region. The stock has seen little coverage by analysts as of late, with the last downgrade sitting at Neutral. Despite this, most of Waterstone Financial, Inc. (NASDAQ:WSBF)’s stock is owned by institutional investors and the shares are down significantly from their 2021 peak of roughly $21.

Insider Monkey dug through 943 hedge funds for their first quarter of 2023 shareholdings and discovered that seven had held a stake in the bank. Waterstone Financial, Inc. (NASDAQ:WSBF)’s biggest investor is Jim Simons’ Renaissance Technologies with a stake worth $20 million.

Disclosure: None. You can also take a look at 10 Boring Stocks That Make Money and 10 Best Stocks To Invest In For Financial Stability.

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