In this article, we will list the 5 Undervalued Financial Stocks to Buy Now. Please visit 12 Undervalued Financial Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. MetLife, Inc. (NYSE:MET)
On May 26, 2026, Piper Sandler raised the firm’s price target on MetLife, Inc. (NYSE:MET) to $86 from $81 and maintained a Neutral rating on the shares. Piper Sandler cited recent stock performance and the roll-forward of estimates. The firm also said it slightly raised price targets for most insurance carriers and reduced price targets for some insurance brokers.
On May 21, 2026, Morgan Stanley analyst Bob Huang raised the firm’s price target on MetLife, Inc. (NYSE:MET) to $93 from $89 and maintained an Overweight rating on the shares. Huang said Q1 results were “generally strong” for life insurance companies and expects earnings momentum to continue through the rest of 2026, supported by international business momentum and continued improvements in mortality.
Earlier in May, MetLife, Inc. (NYSE:MET) reported Q1 adjusted EPS of $2.42, ahead of the consensus estimate of $2.27. Revenue totaled $19.07B, below the consensus estimate of $19.42B. President and CEO Michel Khalaf said MetLife delivered “exceptional performance” in the first quarter, with adjusted EPS up 23% and widespread top-line growth. Khalaf also cited progress in year two of New Frontier, disciplined execution, and capital deployment that balances business investment with shareholder returns.
MetLife, Inc. (NYSE:MET) provides insurance, annuities, employee benefits, and asset management services worldwide.
4. Arthur J. Gallagher & Co. (NYSE:AJG)
On May 26, 2026, Arthur J. Gallagher & Co. (NYSE:AJG) announced the acquisition of West Palm Beach, Florida-based Twin Elms. Terms of the transaction were not disclosed. Twin Elms is a retail insurance broker focused on environmental insurance products and services for U.S. clients.
On May 21, 2026, Morgan Stanley lowered the firm’s price target on Arthur J. Gallagher & Co. (NYSE:AJG) to $240 from $265 and maintained an Overweight rating on the shares. Morgan Stanley noted that most property and casualty insurance companies saw slower premium growth but substantial underwriting profit in Q1, while expecting pricing and premiums to deteriorate further.
On May 20, Arthur J. Gallagher & Co. also announced that its U.S. wholesale brokerage, binding authority, and programs division, Risk Placement Services, acquired King of Prussia, Pennsylvania-based McKee Risk Management. Terms of the transaction were not disclosed. McKee Risk Management is a program administrator providing underwriting, policy administration, claims coordination, and risk management services, with program focuses in construction, public entity, and property. Clyde McKee III, Clyde McKee IV, and their team will operate under RPS’s program administration division.
Arthur J. Gallagher & Co. (NYSE:AJG) provides insurance and reinsurance brokerage, consulting, and third-party property/casualty claims settlement and administration services worldwide.
3. State Street Corporation (NYSE:STT)
On May 26, 2026, Wells Fargo raised the firm’s price target on State Street Corporation (NYSE:STT) to $171 from $162 and maintained an Overweight rating on the shares. Wells Fargo said a meeting with CFO John Woods reinforced its view that State Street is entering a multiyear inflection for organic growth, operating leverage, and EPS. The firm noted that two to three years of behind-the-scenes work appear to be becoming more visible and said it sees State Street re-rating higher.
Citi analyst Benjamin Gerlinger also raised the firm’s price target on State Street Corporation (NYSE:STT) to $172 from $150 and maintained a Buy rating on the shares. Citi adjusted targets in the banks group following a transfer of analyst coverage.
Last month, State Street Corporation (NYSE:STT) reported Q1 adjusted EPS of $2.84, ahead of the consensus estimate of $2.64. Revenue totaled $3.8B, above the consensus estimate of $3.69B. The company said its focus on being an “essential partner” to clients, supported by operational excellence and a diversified business model, helped deliver a strong start to 2026.
State Street Corporation (NYSE:STT) provides financial products and services to institutional investors.
2. Raymond James Financial, Inc. (NYSE:RJF)
On May 20, 2026, Raymond James Financial, Inc. (NYSE:RJF) CEO Paul Shoukry said client assets under administration reached a record $1.87 trillion, up 22% year-over-year and 6% sequentially, driven mainly by higher equity markets and net asset inflows. Shoukry also said PCG fee-based assets increased 28% year-over-year and 7% from the prior month, while domestic cash sweep and Enhanced Savings Program balances of $55.6 billion were flat year-over-year and down 4% sequentially. Shoukry noted that investment banking pipelines and client activity remain strong, though deal closing timing is still uncertain.
Last month, Barclays raised the firm’s price target on Raymond James Financial, Inc. (NYSE:RJF) to $182 from $174 and maintained an Overweight rating on the shares. Barclays said expenses remain in focus after the company beat Q1 estimates.
On April 22, 2026, Raymond James Financial, Inc. (NYSE:RJF) reported Q2 adjusted EPS of $2.83, ahead of the consensus estimate of $2.76. Revenue totaled $3.86B, above the consensus estimate of $3.85B. CEO Paul Shoukry said the company generated record results for the first half of the fiscal year, supported by record PCG fee-based assets and 7% annualized net new asset growth. Shoukry also cited ongoing technology development, including increased AI integration, and said financial advisor recruiting remains robust while the investment banking pipeline is strong.
Raymond James Financial, Inc. (NYSE:RJF) provides private client group, capital markets, asset management, banking, and other financial services in the United States, Canada, and Europe.
1. JPMorgan Chase & Co. (NYSE:JPM)
On May 21, 2026, Cohen & Steers announced a partnership with JPMorgan Chase & Co. (NYSE:JPM) to give investors outside the United States access to the Cohen & Steers SICAV Short Duration Hybrid Credit & Income Fund through JPMorgan’s global wealth management platform. The fund seeks to provide high current income through global hybrid credit securities, with a targeted weighted average duration of less than three years. Cohen & Steers said the partnership reflects a broader industry shift toward greater diversification within fixed income portfolio allocations.
On the same day, JPMorgan CEO Jamie Dimon said Wall Street giants will likely hire more AI specialists and fewer traditional bankers, according to Bloomberg’s Cathy Chan and Haslinda Amin. Dimon said AI will “reduce our jobs down the road,” while also making employees more productive. Dimon also said the transition can be managed through natural turnover rather than sweeping layoffs and expects new client-facing roles to be created.
Earlier in May, JPMorgan Asset Management announced the launch of its second tokenized money market fund available to U.S. investors, JPMorgan OnChain Liquidity-Token Money Market Fund, or JLTXX, on the public Ethereum blockchain. JPMorgan said JLTXX is a U.S. registered government money market fund designed to invest in a way that supports stablecoin issuers under the GENIUS Act.
JPMorgan Chase & Co. (NYSE:JPM) operates as a bank and financial holding company across the United States, the rest of North America, Europe, the Middle East, Africa, the Asia Pacific, Latin America, and the Caribbean.
While we acknowledge the potential of JPM 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 JPM and that has 100x upside potential, check out our report about the cheapest AI stock.
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