Is Valley National Bancorp (VLY) the Best Undervalued Stock Under $20 to Buy?

Valley National Bancorp (NASDAQ:VLY) is among the 13 Most Undervalued Stocks Under $20 to Buy. On October 27, TD Cowen lifted its price target on the stock to $15 from $14, while maintaining a Buy rating on its shares.

The firm said the company is on track to expand its net interest margin (NIM) better than competitors, given its lower deposit costs, robust commercial and industrial (C&I) lending pipeline, and benefits from asset repricing.

TD Cowen’s adjustment on the stock followed the company’s Q3 FY25 earnings call on October 23, during which management noted a 56-basis-point reduction in its average cost of deposits since Q3 2024. The company added that it expects this momentum to continue through the fourth quarter and into fiscal 2026.

Moreover, this was the second consecutive quarter of 3% NIM growth, and the sixth successive quarter of improvement for the metric, driven by asset repricing and sequential increases in average non-interest deposits.

Valley National Bancorp (NASDAQ:VLY) posted a net income of $163.4 million for the quarter, up from $133.2 million in the prior year’s period. Diluted EPS stood at $0.28, beating expectations of $0.26 per share.

CEO Ira Robbins credited the results to the company’s strong operational momentum, rising core customer deposits, net interest, and fee income.

The stock has returned nearly 21% year-to-date as of the close of business on November 7.

Valley National Bancorp (NASDAQ:VLY) is the holding company for Valley National Bank.

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Disclosure: None.