Sectors & IndustriesFinancial Services

Best Financial Stocks to Buy Now (2023)

Top financial stocks in 2023 ranked by overall Zen Score. See the best financial stocks to buy now, according to analyst forecasts for the financial services sector.

According to Zen Score, the 3 best financial service stocks to buy right now are:

Ameris Bancorp (NASDAQ:ABCB) is the top financial stock with a Zen Score of 64, which is 30 points higher than the financial sector average of 34. It passed 23 out of 38 due diligence checks and has strong fundamentals. Ameris Bancorp has seen its stock lose -19.48% over the past year, underperforming other financial stocks by -19 percentage points.

Ameris Bancorp has an average 1 year price target of $46.00, an upside of 8.03% from Ameris Bancorp's current stock price of $42.58.

Ameris Bancorp stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ameris Bancorp, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dime Community Bancshares (NASDAQ:DCOM) is the second best financial stock with a Zen Score of 62, which is 28 points higher than the financial sector average of 34. It passed 22 out of 38 due diligence checks and has strong fundamentals. Dime Community Bancshares has seen its stock lose -43.65% over the past year, underperforming other financial stocks by -43 percentage points.

Dime Community Bancshares has an average 1 year price target of $23.00, an upside of 14.43% from Dime Community Bancshares's current stock price of $20.10.

Dime Community Bancshares stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Dime Community Bancshares, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Heritage Commerce (NASDAQ:HTBK) is the third best financial stock with a Zen Score of 61, which is 27 points higher than the financial sector average of 34. It passed 21 out of 38 due diligence checks and has strong fundamentals. Heritage Commerce has seen its stock lose -40.25% over the past year, underperforming other financial stocks by -40 percentage points.

Heritage Commerce has an average 1 year price target of $9.75, an upside of 14.84% from Heritage Commerce's current stock price of $8.49.

Heritage Commerce stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Heritage Commerce, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 521 financial stocks that have issued dividends in the past year, the 3 financial stocks with the highest dividend yields are:

Lake Shore Bancorp (NASDAQ:LSBK) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 4.11%. Lake Shore Bancorp's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Lake Shore Bancorp's dividend has shown consistent growth over the last 10 years.

Lake Shore Bancorp's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

American Equity Investment Life Holding Co (NYSE:AEL) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 4.11%. American Equity Investment Life Holding Co's dividend payout is stable, having never dropped by more than 10% in the last 10 years. American Equity Investment Life Holding Co's dividend has shown consistent growth over the last 10 years.

American Equity Investment Life Holding Co's dividend payout ratio of 4.3% indicates that its dividend yield is sustainable for the long-term.

Luther Burbank (NASDAQ:LBC) has an annual dividend yield of N/A, which is N/A percentage points lower than the financial sector average of 4.11%. Luther Burbank's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Luther Burbank's dividend has shown consistent growth over the last 10 years.

Luther Burbank's dividend payout ratio of 0% indicates that its dividend yield might not be sustainable for the long-term.

Financial stocks were up 0.58% in the last day, and up 0.48% over the last week. Canadian Imperial Bank Of Commerce was the among the top gainers in the financial services sector, gaining 5.2% yesterday.

Canadian Imperial Bank shares are trading higher after the company reported a year-over-year increase in Q4 financial results.

Based on WallStreetZen's Valuation Score, the 3 most undervalued financial stocks right now are:

Atlanticus Holdings (NASDAQ:ATLC) is the most undervalued financial stock based on WallStreetZen's Valuation Score. Atlanticus Holdings has a valuation score of 100, which is 56 points higher than the financial sector average of 44. It passed 7 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has gained 7.19% in the past year. It has overperformed other stocks in the financial sector by 8 percentage points.

Ameris Bancorp (NASDAQ:ABCB) is the second most undervalued financial stock based on WallStreetZen's Valuation Score. Ameris Bancorp has a valuation score of 100, which is 56 points higher than the financial sector average of 44. It passed 7 out of 7 valuation due diligence checks.

Ameris Bancorp's stock has dropped -19.48% in the past year. It has underperformed other stocks in the financial sector by -19 percentage points.

Connectone Bancorp (NASDAQ:CNOB) is the third most undervalued financial stock based on WallStreetZen's Valuation Score. Connectone Bancorp has a valuation score of 100, which is 56 points higher than the financial sector average of 44. It passed 7 out of 7 valuation due diligence checks.

Connectone Bancorp's stock has dropped -25.08% in the past year. It has underperformed other stocks in the financial sector by -24 percentage points.