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    Is Valley National Bancorp (VLY) Cheap On Higher Earnings And A Completed Buyback?

    Simply Wall St·10/26/2026 03:38:40
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    Valley National Bancorp (VLY) moved into focus after reporting third quarter results that paired higher net interest income and net income with greater net charge offs, along with the completion of a planned share repurchase program.

    Recent price action reflects that story. The one week share price return of 11.06% and 1 day gain of 1.81% around the earnings release suggest investors are reacting positively to Valley National Bancorp’s higher net interest income and completed buyback, even though the 90 day share price return is down 2.02%. Over a longer period, the 1 year total shareholder return of 32.50% and 3 year total shareholder return of 107.46% point to strong compounding for investors, while the 20.27% year to date share price return indicates momentum has been building again through 2026.

    Scan how Valley National Bancorp’s earnings momentum and buyback story compare with other potential breakouts on our curated list of 29 high quality undervalued stocks.

    For Valley National Bancorp, the latest jump lines up with stronger net interest income, higher net income and a completed buyback. However, rising net charge offs tell a different story. How does that mix translate into today’s valuation?

    Most Popular Narrative: 15.2% Undervalued

    Against a last close of $14.06 for Valley National Bancorp, the most followed narrative anchors fair value at about $16.57, framing the recent price strength as only a partial catch up to that estimate.

    Valley National Bancorp's accelerating growth in commercial and specialty deposit accounts is now underscored by about US$4.5b of new core deposits over the 12 months to Q2 2026 and the expected addition of US$2.1b of low cost Bluevine small business deposits, which supports a lower loans to deposit profile and can lift net interest margin and net interest income as higher cost brokered funding is replaced.

    See why 27 investors see Valley National Bancorp as 15% undervalued.

    Result: Fair Value of $16.57 (UNDERVALUED)

    Still, the Valley National Bancorp story can be knocked off course if geographic concentration in New Jersey, New York and Florida becomes a problem or if loan profitability stays weaker than peers.

    Find out about the key risks to this Valley National Bancorp narrative.

    Next Steps

    Curious whether the optimism around Valley National Bancorp really stacks up for you? Put the numbers in context, weigh the risks, then see how other investors are framing the upside in the 5 key rewards.

    Looking for more investment ideas beyond Valley National Bancorp?

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