5 Most Undervalued Bank Stocks To Buy According To Wall Street Analysts

In this piece, we will take a look at the five most undervalued bank stocks to buy according to Wall Street analysts. If you want to take a look at what’s happening in the banking world these days, then head on over to 11 Most Undervalued Bank Stocks To Buy According To Wall Street Analysts.

5. Cullen/Frost Bankers, Inc. (NYSE:CFR)

Share Price Upside: 20.11%

Cullen/Frost Bankers, Inc. (NYSE:CFR) is a Texas based bank with close to five thousand employees. It has beaten analyst EPS estimates for all four of its latest quarters and the shares are rated Buy on average. The bank is also aiming to grow its operational presence in Austin, Texas by doubling its facilities by 2026.

Insider Monkey’s June quarter of 2023 survey of 910 hedge funds outlined that 17 had held a stake in the bank. Cullen/Frost Bankers, Inc. (NYSE:CFR)’s biggest hedge fund investor is Ken Griffin’s Citadel Investment Group since it owns 694,983 shares that are worth $74 million.

4. Wintrust Financial Corporation (NASDAQ:WTFC)

Share Price Upside: 20.93%

Wintrust Financial Corporation (NASDAQ:WTFC) provides insurance financing, loans, mortgages, and standard banking products and services. It is a dividend paying stock, and one that is also rated Strong Buy on average.

After sifting through 910 hedge fund portfolios for their Q2 2023 investments, Insider Monkey discovered that 18 had bought the bank’s shares. Wintrust Financial Corporation (NASDAQ:WTFC)’s largest investor out of these is James Hanna’s North Reef Capital since it owns a $58 million stake.

3. Popular, Inc. (NASDAQ:BPOP)

Share Price Upside: 21.05%

Popular, Inc. (NASDAQ:BPOP) is a Puerto Rico based bank that was set up in 1893. It provides different kinds of accounts and loans to a variety of customers. The bank’s average share price target is $80 for a sizeable 21% upside. Its shares are up 1% year to date and have recovered all their losses since the regional banking crisis of March.

After digging through 910 hedge funds for their second quarter of 2023 shareholdings, Insider Monkey discovered that 20 had bought Popular, Inc. (NASDAQ:BPOP)’s shares. Bernard Horn’s Polaris Capital Management is the biggest stakeholder, with an investment worth $155 million.

2. First Citizens BancShares, Inc. (NASDAQ:FCNCA)

Share Price Upside: 23.33%

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is an American bank headquartered in Raleigh, North Carolina. It beat analyst EPS estimates for the second quarter, and the stock is rated Buy on average.

49 of the 910 hedge funds part of Insider Monkey’s Q2 2023 database had invested in First Citizens BancShares, Inc. (NASDAQ:FCNCA). Out of these, the largest shareholder is Natixis Global Asset Management’s Harris Associates with a $666 million investment.

1. HDFC Bank Limited (NYSE:HDB)

Share Price Upside: 29.07%

HDFC Bank Limited (NYSE:HDB) is an Indian bank headquartered in Mumbai, India. It is one of India’s largest private sector banks and the first stock on our list which is rated Strong Buy on average. The average share price target is $82.45 for a nearly 30% upside over the latest share price.

During this year’s June quarter, 38 of the 910 hedge funds profiled by Insider Monkey had held a stake in the bank. HDFC Bank Limited (NYSE:HDB)’s largest investor in our database is Andreas Halvorsen’s Viking Global since it owns a $649 million stake.

Disclosure: None. You can also take a look at 10 Recession-Proof Stocks Billionaires Are Loading Up On and 12 Best Performing Bank Stocks in 2023.

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