U.S. Markets open in 4 hrs 29 mins
  • S&P Futures

    4,297.75
    -10.00 (-0.23%)
     
  • Dow Futures

    34,065.00
    -53.00 (-0.16%)
     
  • Nasdaq Futures

    13,603.50
    -54.75 (-0.40%)
     
  • Russell 2000 Futures

    2,019.50
    -3.80 (-0.19%)
     
  • Crude Oil

    86.64
    +0.11 (+0.13%)
     
  • Gold

    1,788.70
    -1.00 (-0.06%)
     
  • Silver

    20.00
    -0.09 (-0.45%)
     
  • EUR/USD

    1.0168
    -0.0003 (-0.0305%)
     
  • 10-Yr Bond

    2.8240
    0.0000 (0.00%)
     
  • Vix

    19.82
    -0.13 (-0.65%)
     
  • GBP/USD

    1.2096
    +0.0001 (+0.0109%)
     
  • USD/JPY

    134.8020
    +0.5870 (+0.4374%)
     
  • BTC-USD

    23,816.69
    -193.70 (-0.81%)
     
  • CMC Crypto 200

    568.04
    -3.88 (-0.68%)
     
  • FTSE 100

    7,540.93
    +4.87 (+0.06%)
     
  • Nikkei 225

    29,222.77
    +353.86 (+1.23%)
     

Prudential (PRU) Gains But Lags Market: What You Should Know

·3 min read

Prudential (PRU) closed the most recent trading day at $98.10, moving +0.47% from the previous trading session. This move lagged the S&P 500's daily gain of 1.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq lost 0.01%.

Prior to today's trading, shares of the financial services company had gained 1.36% over the past month. This has lagged the Finance sector's gain of 1.97% and the S&P 500's gain of 3.2% in that time.

Prudential will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2022. The company is expected to report EPS of $2.62, down 30.87% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.56 billion, down 4.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.86 per share and revenue of $52.03 billion, which would represent changes of -25.51% and -14.31%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Prudential. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.51% lower. Prudential currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Prudential is currently trading at a Forward P/E ratio of 8.99. For comparison, its industry has an average Forward P/E of 9.82, which means Prudential is trading at a discount to the group.

Meanwhile, PRU's PEG ratio is currently 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. PRU's industry had an average PEG ratio of 1.04 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.