Three Hidden Gems: Undervalued Stocks Poised for a Rebound in February 2026
NEW YORK – As February 2026 unfolds, U.S. equity markets are demonstrating a notable resilience. The Dow Jones Industrial Average and S&P 500 have maintained upward momentum, shrugging off persistent headwinds from volatile oil prices and simmering geopolitical tensions. This environment of cautious optimism is creating pockets of opportunity, particularly in stocks that appear mispriced relative to their fundamental worth. For value-oriented investors, these market dislocations could present attractive entry points.
Access our complete screening of 170 potentially undervalued U.S. stocks based on discounted cash flow models here.
Below, we delve into three compelling candidates from our screening results that warrant a closer look this month.
1. Peapack-Gladstone Financial Corporation (NASDAQ: PGC)
Market Cap: $552.7M | Sector: Financials
Peapack-Gladstone Financial operates as the holding company for Peapack Private Bank & Trust, a provider of private banking and wealth management services. The stock currently trades at $31.72, which our analysis suggests is a 12.4% discount to its estimated fair value of $36.20, based on future cash flow projections.
The bank posted robust growth in 2025, with net interest income climbing to $200.91 million from $149.01 million the prior year. Net income also improved to $37.33 million from $32.99 million. Investors should note a sharp increase in charge-offs to $5.26 million in Q4 2025, a significant jump from a negligible $44,000 a year ago, which may signal credit quality pressures in a specific portfolio.
2. Metropolitan Bank Holding Corp. (NYSE: MCB)
Market Cap: $934.2M | Sector: Financials
Metropolitan Bank Holding, parent of Metropolitan Commercial Bank, offers a suite of commercial and retail banking products. Trading at $92.60, the stock presents what appears to be a deep value opportunity, priced at a staggering 40.4% below its estimated cash flow fair value of $155.39.
Financial performance remains solid, with 2025 net interest income reaching $303.24 million, up from $253.08 million in 2024. Net income also grew to $71.10 million. However, caution flags include a low forecasted return on equity and notable insider selling activity over the past quarter, which may give some investors pause despite the attractive valuation gap.
3. Rush Street Interactive, Inc. (NYSE: RSI)
Market Cap: $4.05B | Sector: Consumer Cyclical
Rush Street Interactive is a growing force in online casino gaming and sports betting across the Americas. At $17.67 per share, it trades at a 19.2% discount to its estimated fair value of $21.88. The company recently crossed into profitability, a major milestone, and boasts a stellar projected return on equity of 55.2%.
Growth forecasts are particularly bright. Analysts expect earnings to surge by 34.4% annually, with revenue growth projected at 15.8%—outpacing the broader market. This combination of value and growth has led some analysts to predict a potential 35% upside in the stock price.
Market Voices: Investor Perspectives
David Chen, Portfolio Manager at Horizon Capital: "In this market, true value is scarce. MCB's discount is eye-catching, but you must scrutinize the reasons—insider selling and ROE concerns aren't trivial. RSI, however, represents a rare blend of value and hyper-growth in a secular trend."
Sarah Miller, Independent Retail Investor: "I'm cautiously adding PGC on dips. The core banking business is growing nicely, and the valuation cushion helps absorb some of the credit risk. It's a calculated bet on regional banking stability."
Marcus Johnson, Financial Blogger at 'The Skeptical Investor': "This is classic 'value trap' fishing. MCB at a 40% 'discount'? The market isn't stupid—that discount is there for a reason. And touting a sports betting stock as a 'value pick' in 2026 shows how distorted these screeners have become. This isn't investing; it's hoping for a multiple expansion miracle."
Anita Rodriguez, CFA, University Finance Lecturer: "These screens are a starting point, not an endpoint. RSI's metrics are impressive, but the sector is fiercely competitive and heavily regulated. The high ROE projection is enticing but depends on sustained market share gains. Due diligence is non-negotiable."
Disclaimer: This analysis, based on historical data and analyst forecasts using an unbiased methodology, is for informational purposes only. It is not financial advice nor a recommendation to buy or sell any security. It does not consider your individual objectives or financial situation. Our long-term focused analysis is driven by fundamental data and may not incorporate the latest price-sensitive company announcements. The author and publisher have no position in any stocks mentioned.
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