11 Best Mid-Cap Value Stocks to Buy According to Analysts

8. Valley National Bancorp (NASDAQ:VLY)

Fwd. P/E: 10.2; P/B: 0.71

Potential Upside: 28%

Number of Hedge Fund Holders: 27

Valley National Bancorp (NASDAQ:VLY), through its regional bank Valley National Bank and its subsidiaries, provides a comprehensive range of national and regional banking services. Its offerings span commercial and private banking, retail banking, insurance, and wealth management. As of December 31, 2024, the company reported consolidated total assets of $62.5 billion, total net loans of $48.2 billion, total deposits of $50.1 billion, and total shareholders’ equity of $7.4 billion.

After a 17% decline in 2024, Valley National Bancorp (NASDAQ:VLY) shares have recovered slightly, rising approximately 2% year-to-date. Despite this modest rebound, the stock continues to trade at a relatively low valuation, with a forward price-to-earnings (P/E) ratio of 10.2 and a price-to-book (P/B) ratio of 0.71.

The company’s Q4 2024 financial results highlighted both challenges and opportunities. It reported net interest income of $424.3 million, supported by a 6-basis-point improvement in its net interest margin to 2.92%. This expansion was driven by an increase in lower-cost core deposits and a gradual normalization of the yield curve. However, adjusted net income for the quarter came in at $75.7 million, marking a 22% decline from the previous quarter. Despite this short-term weakness, analysts remain optimistic about the company’s earnings trajectory, with consensus projections of 52% growth in 2025 and 22% in 2026.

To strengthen financial stability and position itself for long-term growth, Valley National Bancorp is actively working to rebalance its loan portfolio by reducing its exposure to commercial real estate (CRE) loans. This strategic shift aims to create a more diversified and less risky portfolio. Additionally, the company is focused on increasing fee-based income, driving branch deposit growth, and implementing cost-cutting initiatives to enhance overall profitability.

Following the earnings report, analyst sentiment remained mixed, though the consensus one-year price target suggests a potential upside of 25%. On January 24, JP Morgan analyst Anthony Elian reaffirmed his Buy rating on Valley National Bancorp (NASDAQ:VLY) with a price target of $11, expressing confidence in the company’s long-term prospects. Meanwhile, analysts at Citi raised their price target to $11 but maintained a Neutral rating, reflecting a more cautious stance on the stock’s near-term performance.