2023 has been a bounce-back year for the stock market thus far, led by a resurgence in technology stocks. The Nasdaq Composite is up some 28% year to date. However, the best deals right now are in a different sector, one that was hard hit early in 2023 by a short-term crisis after getting hard hit in 2022 by quickly rising interest rates. That sector, of course, was financials.

Here are three otherwise excellent stocks that are currently trading at a significant discount -- all from the financial sector. Let's find out a bit more about each and learn why these three stocks might be fantastic deals right now.

It has been a while since the second largest bank in the U.S., Bank of America (NYSE: BAC), has been this cheap. Aside from a short time early in the pandemic in March 2020, Bank of America has not had a price-to-earnings (P/E) ratio this low since early 2016. It currently has a P/E ratio of 8.7 and a forward P/E ratio of 8.2. The stock is trading at about $29 per share, down roughly 13% year to date, as of June 20. With a price-to-book ratio of 0.91, it is trading below its book value per share, another prime indicator that it is undervalued.

Continue reading

Source Fool.com